How do I journalize my answer for number 3?

Judgment Case 6-9

Principal or agent

AuctionCo.com sells used products collected from different suppliers. Assume a customer purchases a used bicycle through AuctionCo.com for $300. AuctionCo.com agrees to pay the supplier $200 for the bicycle. The bicycle will be shipped to the customer by the original bicycle owner.

Required:

1. Assume AuctionCo.com takes control of this used bicycle before the sale and pays $200 to the supplier. Under this assumption, how much revenue would AuctionCo.com recognize at the time of the sale to the customer?
2. Assume AuctionCo.com never takes control of this used bicycle before the sale. Instead, the bicycle is shipped directly to the customer by the original bicycle owner, and then AuctionCo.com pays $200 to the supplier. Under this assumption, how much revenue would AuctionCo.com recognize at the time of the sale to the customer?
3. Assume AuctionCo.com promises to pay $200 to the supplier regardless of whether the bicycle is sold, but the bicycle will continue to be shipped directly from the supplier to the customer. Under this assumption, how much revenue would AuctionCo.com recognize at the time of the sale to the customer?

In the circumstances where more parties are involved in providing goods and services to the customers along with the seller, the seller must ascertain whether he/she is a principal or an agent to determine the performance obligations. A principal controls the goods and services and is responsible for the delivery to the customers. On the other hand, an agent does not have any control over the goods and services but facilitates the transfer between the supplier and the customer.

In this case, AuctionCo.com (AC) sells the used products collected from different suppliers. A customer purchases a used bicycle from AC for $300. AC agrees to pay the suppliers $200 and the bicycle is shipped from supplier to the customer directly.

1. Answer: In this situation, AC would be considered as principal as AC gains the control of the used bicycle by paying $200 to the supplier and sells it to the customer. Therefore, AC should recognize the revenue of $300, the price paid by the customer.
2. Answer: In this situation, AC would be considered as an agent as AC never takes control of the used bicycle before it was sold to the customer. Therefore, AC should recognize the revenue of $100 ($300-$200) the difference between the selling price and price paid to the supplier as its commission for facilitating the transfer of the used bicycle from the supplier to the customer after sending $200 to the supplier.
3. Answer: In this situation, AC would be considered as principal because AC promised to pay $200 to the supplier irrespective of the bicycle even if it does not take possession of the bicycle. Therefore, AC should recognize $300 as revenue on the sale of the bicycle.

How do I post the journal entries associated with Number 3? Thank you!!