Crane Inc. sells tickets for a Caribbean cruise on ShipAway Cruise Lines to Cullumber Company employees. The total cruise package price to Cullumber Company employees is $84,000. Crane Inc. receives a commission of 6% of the total price. Crane Inc. therefore remits $78,960 to ShipAway. Prepare the journal entry to record (1) the receipt of payment of $84,000 from employees for the cruise packages and (2) the remittance and revenue recognized by Crane Inc. on this transaction. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) No. Account Titles and Explanation 1. Accounts Payable Cash No Entry 2 Cash Debit 84,000 78.960 Commission Expense 5,040 Sales Revenue No Entry ° Credit 84,000 0 84,000

Crane Inc. sells tickets for a Caribbean cruise on ShipAway Cruise Lines to Cullumber Company employees. The total cruise package price to Cullumber Company employees is $84,000. Crane Inc. receives a commission of 6% of the total price. Crane Inc. therefore remits $78,960 to ShipAway. Prepare the journal entry to record (1) the receipt of payment of $84,000 from employees for the cruise packages and (2) the remittance and revenue recognized by Crane Inc. on this transaction. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) No. Account Titles and Explanation 1. Accounts Payable Cash No Entry 2 Cash Debit 84,000 78.960 Commission Expense 5,040 Sales Revenue No Entry ° Credit 84,000 0 84,000

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter6: Cash And Receivables

Section: Chapter Questions

Problem 11RE: On December 1 of the current year, Jordan Inc. assigns 125,000 of its accounts receivable to...

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Travel Inc. sells tickets for a Caribbean cruise on ShipAway Cruise Lines to Carmel Company employees. The total cruise package price to Carmel Company employees is $70,000. Travel Inc. receives a commission of 6% of the total price. Travel Inc. therefore remits $65,800 to ShipAway. Prepare the journal entry to record (1) the receipt of payment of $70,000 from employees for the cruise packages and (2) the remittance and revenue recognized by Travel Inc. on this transaction.
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Crane Inc. sells tickets for a Caribbean cruise on ShipAway Cruise Lines to Cullumber Company employees. The total cruise package price to Cullumber Company employees is $84,000. Crane Inc. receives a commission of 6% of the total price. Crane Inc. therefore remits $78,960 to ShipAway. Prepare the journal entry to record (1) the receipt of payment of $84,000 from employees for the cruise packages and (2) the remittance and revenue recognized by Crane Inc. on this transaction. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) No. Account Titles and Explanation 1. CAsh 2. No Entry Commission Expense Sales Revenue No Entry Debit 84,000 0 78,960 5,040 0 Credit 84,000 0 84,000 0
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