Travel Inc. sells tickets for a Caribbean cruise on ShipAway Cruise Lines to Wildhorse Company...
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Accounting
Travel Inc. sells tickets for a Caribbean cruise on ShipAway Cruise Lines to Wildhorse Company employees. The total cruise package price to Wildhorse Company employees is $81,000. Travel Inc. receives a commission of 6% of the total price. Travel Inc. therefore remits $76,140 to ShipAway. Prepare the journal entry to record (1) the receipt of payment of $81,000 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 O for the amounts.)
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