Principal: Principal is the legal owner of goods or service which is transferred to the customer for legal consideration. Agent: Agent is a facilitator for transferring goods and service from seller to buyers. Agent received commission from principal for his service. To describe: The amount of revenue recognized in the principle agent agreement.

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Chapter 6, Problem 6.17BE

To determine

Principal:

Principal is the legal owner of goods or service which is transferred to the customer for legal consideration.

Agent:

Agent is a facilitator for transferring goods and service from seller to buyers. Agent received commission from principal for his service.

To describe: The amount of revenue recognized in the principle agent agreement.

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