Question: Online Company operates a Web grocer. Customers submit their orders online to Online Company; Online then forwards the orders to a national grocery chain. The

Online Company operates a Web grocer. Customers submit their orders online to Online Company; Online then forwards the orders to a national grocery chain. The grocery chain arranges for assembly and shipment of the order. Online Company receives 2% of the retail value of all orders it takes. During January, Online Company received orders for groceries with a retail selling price of $300,000. These groceries cost the grocery store chain $210,000. The grocery store chain collected cash of $300,000 from the customers and paid the appropriate commission in cash to Online Company. Based on this information, make all journal entries necessary in January

(1) On the books of Online Company and

(2) On the books of the grocery store chain. Assume that the grocery store chain uses a perpetual inventory system.

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