The agreement with Park Adrenaline states that HT can set the selling price, but the higher of $30 for

sweat shirts and $10 for hats or 60% of the actual selling price must be remitted to Park Adrenaline.

Additionally, HT has assumed the risk of any loss or stolen merchandise. HT is also responsible for

returns if the customer does return the merchandise.

Determine if HT is acting as a principal or an agent for the sale of Park Adrenaline sweat shirts and hats and, accordingly, the

amount of revenue that should be recorded. Provide a thorough explanation of your conclusions.