Travel Inc. sells tickets for a Caribbean cruise on ShipAway Cruise Lines to Carla Vista Company employees. The total cruise package price to Carla Vista Company employees is $ 79,000. Travel Inc. receives a commission of 6% of the total price. Travel Inc. therefore remits $ 74,260 to ShipAway. Prepare the journal entry to record (1) the receipt of payment of $ 79,000 from employees for the cruise packages and (2) the remittance and revenue recognized by Travel Inc. on this transaction.

Travel Inc. sells tickets for a Caribbean cruise on ShipAway Cruise Lines to Carla Vista Company employees. The total cruise package price to Carla Vista Company employees is $ 79,000. Travel Inc. receives a commission of 6% of the total price. Travel Inc. therefore remits $ 74,260 to ShipAway. Prepare the journal entry to record (1) the receipt of payment of $ 79,000 from employees for the cruise packages and (2) the remittance and revenue recognized by Travel Inc. on this transaction.

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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