Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Blossom Inc. sells tickets for a Caribbean cruise on ShipAway Cruise Lines to Crane Company employees. The total cruise package price to Crane Company employees

Blossom Inc. sells tickets for a Caribbean cruise on ShipAway Cruise Lines to Crane Company employees. The total cruise package price to Crane Company employees is $83,000. Blossom Inc. receives a commission of 6% of the total price. Blossom Inc. therefore remits $78,020 to ShipAway.
Prepare the journal entry to record (1) the receipt of payment of $83,000 from employees for the cruise packages and (2) the remittance and revenue recognized by Blossom 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
Debit
Credit
1.
2.
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Lakeside Company Case Studies In Auditing

Authors: John Trussel, J. Douglas Frazer

12th Edition

0132567253, 978-0132567251

More Books

Students also viewed these Accounting questions

Question

Identify who attempts to harmonize SRI practices.

Answered: 1 week ago

Question

2. Describe how technology can impact intercultural interaction.

Answered: 1 week ago