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Prepare the journal entry to record (1) the receipt of payment of $62,000 from employees for the cruise packages and (2) the remittance and revenue recognized by Travel Inc. on this transaction. (

Prepare the journal entry to record (1) the receipt of payment of $62,000 from employees for the cruise packages and (2) the remittance and revenue recognized by Travel Inc. on this transaction. (

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter17: Advanced Issues In Revenue Recognition
Section: Chapter Questions
Problem 1RE: CustomTee Inc. contracts with various customers to sell T-shirts. In the case of sales, CustomTees...
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Travel 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 $62,000. Travel Inc. receives a commission of 6% of the total price. Travel Inc. therefore remits $58,280 to ShipAway.

Prepare the journal entry to record (1) the receipt of payment of $62,000 from employees for the cruise packages and (2) the remittance and revenue recognized by Travel 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 0 for the amounts.)

Sr. No.
Account Titles and Explanation
Debit
Credit
1.
 
 
 
 
 
 
 
2.
 
 
 
 
 
 
 
 
 
 
 
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