Pharoah Inc. sells tickets for a Caribbean cruise on ShipAway Cruise Lines to Ivanhoe Companyemployees. The total cruise package price to Ivanhoe Company employees is $74,000. PharoahInc. receives a commission of 6% of the total price. Pharoah Inc. therefore remits $69,560 toShipAway.4440Prepare the journal entry to record (1) the receipt of payment of $74,000 from employees for thecruise packages and (2) the remittance and revenue recognized by Pharoah Inc. on thistransaction. (Credit account titles are automatically indented when amount is entered. Do not indentmanually. If no entry is required, select "No entry" for the account titles and enter O for the amounts. Listall debit entries before credit entries.)

Journal entries are used to record the accounting transactions in chronological order under double…

Answered: yees. The total cruise package price to…

yees. The total cruise package price to Ivanhoe Company employees is $74,000. Pharoa ceives a commission of 6% of the total price. Pharoah Inc. therefore remits $69,560 to

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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