Travel Inc. sells tickets for a Caribbean cruise on ShipAway Cruise Lines to Pharoah Company employees. The total cruise package price to Pharoah Company employees is $65,000. Travel Inc. receives a commission of 6% of the total price. Travel Inc. therefore remits $61,100 to ShipAway. Prepare the journal entry to record (1) the receipt of payment of $65,000 from employees for the cruise packages and (2) the remittance and revenue recognized by Travel 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.) Sr. No. Account Titles and Explanation 1. 2. Debit Credit
Travel Inc. sells tickets for a Caribbean cruise on ShipAway Cruise Lines to Pharoah Company employees. The total cruise package price to Pharoah Company employees is $65,000. Travel Inc. receives a commission of 6% of the total price. Travel Inc. therefore remits $61,100 to ShipAway. Prepare the journal entry to record (1) the receipt of payment of $65,000 from employees for the cruise packages and (2) the remittance and revenue recognized by Travel 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.) Sr. No. Account Titles and Explanation 1. 2. Debit Credit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Travel Inc. sells tickets for a Caribbean cruise on ShipAway Cruise Lines to Pharoah Company employees. The total cruise package
price to Pharoah Company employees is $65,000. Travel Inc. receives a commission of 6% of the total price. Travel Inc. therefore remits
$61,100 to ShipAway.
Prepare the journal entry to record (1) the receipt of payment of $65,000 from employees for the cruise packages and (2) the
remittance and revenue recognized by Travel 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.)
Sr. No. Account Titles and Explanation
1.
2.
Debit
Credit
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