Question

Recording Principal and Agent Revenue Entries Travel-by-Air Inc. sells discounted airline tickets to travelers on three major airlines. The discounted airfares are established by the airline companies that fulfill the promised flights. After purchase, customers must contact the airline companies directly for changes to or questions about their airline tickets. The customer pays for the airline ticket through the website of Travel-by-Air. Travel-by-Air forwards the payment for the airline tickets to the airlines less a 10% commission fee. In August of 2020, Travel-by-Air collected cash from customers totaling $40,000, and forwarded $36,000 (fees collected less commission) to the airlines. Prepare the entry recorded by Travel-by-Air Inc. to (a) recognize revenue, and (b) remit payment to the airlines. a. Account Name Dr. Cr. 0 0 0 0 Accounts Payable 0 0 b. 0 0 0 0 Please answer all parts of the question.

Answer 1

	Particulars		Debit	Credit
a)	Cash			$ 40,000.00
	To Commission Revenue		$   4,000.00
	To Accounts Payable			$ 36,000.00
b)	Accounts Payable		$ 36,000.00
	To Cash				$ 36,000.00