Question

In: Accounting

1. Rebates and discounts On March 1, Martin Company sold and delivered goods to Shannon Inc....

1. Rebates and discounts

On March 1, Martin Company sold and delivered goods to Shannon Inc. for $300,000 on account. Shannon Company has been a customer for more than 10 years and has earned a 3% rebate on the overall purchase. Prepare the journal entry to recognize revenue. The journal entry for the cost of goods sold is not required.

2. Commissions, consignee/agent perspective

Royal vacations, a high-end vacation agent, sells tickets for all-inclusive European vacations to various customers. The company sells a $10,000 package and will receive a commission of 4% of the total price. Royal vacations must also remit the sales price to European Destinations, Company. Prepare the journal entry to record the receipt of cash and remittance and revenue recognized the agent.

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Expert Solution

ekkarill92 answered 2 years ago
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