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Crane Inc. sells tickets for a Caribbean cruise on ShipAway Cruise Lines to Cullumber Company employees. The total cruise package price to Cullumber Company
Crane Inc. sells tickets for a Caribbean cruise on ShipAway Cruise Lines to Cullumber Company employees. The total cruise package price to Cullumber Company employees is $84,000. Crane Inc. receives a commission of 6% of the total price. Crane Inc. therefore remits $78,960 to ShipAway. Prepare the journal entry to record (1) the receipt of payment of $84,000 from employees for the cruise packages and (2) the remittance and revenue recognized by Crane Inc. on this transaction. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) No. Account Titles and Explanation 1. Accounts Payable Cash No Entry 2. Cash Commission Expense Sales Revenue No Entry Debit 84,000 0 78,960 5,040 Credit 84,000 84,000
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