Write double entryCreg works as an agent for a number of smaller contractors, earning commission of 10%. Creg’s revenue includes $6,000 received from clients under these agreements with $5,400 in cost of sales representing the amount paid to the contractors.

Answered: Write double entry Creg works as an…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Write double entry

Creg works as an agent for a number of smaller contractors, earning commission of 10%. Creg’s revenue includes $6,000 received from clients under these agreements with $5,400 in cost of sales representing the amount paid to the contractors.

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Step 1

Revenue from commission involves gaining revenue from providing services for which commission can be charged. This can be income for the person delivering the commission as well as expenses for the person receiving the commission services. Commission charges might be included in the cost of sales since they are responsible for encouraging an increase in sales units.

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