Crane Inc. Is an agent for Phillips Co. and negotiates sales contracts between Phillips and the final customer for heating and air conditioning units. By agreement, Crane is to receive a commission of 15% on each sale. During the last quarter, Crane negotiated sales of 100 furnaces for total sales of $ 60,000. The cost of each furnace is $ 37,000.
Calculate the amounts that would be recognized and reported by Phillips and Crane for the last quarter.