Question: Principal-Agent Relationship Question: How do I write journal entry for a company A that charges $5 a minute initially and remits $4 to company B,

Principal-Agent Relationship Question:

How do I write journal entry for a company A that charges $5 a minute initially and remits $4 to company B, and must still remit $4 regardless of if the customer pays or not.

This is also a revenue recognition question on whether it's gross or net basis.

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