Crane Inc. is an agent for Phillips Co. and negotiates sales contracts between Phillips and the final customer for heating and air conditioning units. By agreement, Crane is to receive a commission of 9% on each sale. During the last quarter, Crane negotiated sales of 500 furnaces for total sales of $112,500. The total cost of the furnaces is $69,600. Required: Calculate the amounts that would be recognized and reported by Phillips and Crane for the last quarter. Phillips Crane Gross Sale Cost of goods sold Commission Expense Commission Revenue 4