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. CAsh 2. No Entry Commission Expense Sales Revenue No Entry Debit 84,000 0 78,960 5,040 0 Credit 84,000 0 84,000 0

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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 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.
CAsh
2.
No Entry
Commission Expense
Sales Revenue
No Entry
Debit
84,000
0
78,960
5,040
0
Credit
84,000
0
84,000
0
Transcribed Image Text: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. CAsh 2. No Entry Commission Expense Sales Revenue No Entry Debit 84,000 0 78,960 5,040 0 Credit 84,000 0 84,000 0
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