Travel Inc. sells tickets for a Caribbean cruise on ShipAway Cruise Lines to Sheridan Company employees. The total cruise package price to Sheridan Company employees is $69,000. Travel Inc. receives a commission of 6% of the total price. Travel Inc. therefore remits $72,380 to ShipAway. Prepare the journal entry to record (1) the receipt of payment of $69,000 from employees for the cruise packages and (2) the remittance and revenue recognized by Travel Inc. on this transaction.

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Sr. No. Account Titles and Explanation Debit Credit 1. Cash 70000 Commission Expense 70000 2. Sales Revenue 70000 Cash 65800 Commission Revenue 4200 Sr. No. Account Titles and Explanation Debit Credit 1. Cash 70000 Commission Expense 70000 2. Sales Revenue 70000 Cash 65800 Commission Revenue 4200

Answer rating: 100% (QA)

Answer 1 Cash 70000 ... View the full answer