Question: 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

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.

Required:
Calculate the amounts that would be recognized and reported by Phillips and Crane for the last quarter.

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