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02-06-2023
Business

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Essex Travel Inc. sells to Kingsville Company employees a cruise package for a Caribbean cruise on ShipAway Cruise Lines. The total cruise package to Kingsville Company employees is $80,000. Essex Travel receives a commission of 10% of the total price and therefore remits $72,000 to ShipAway. Prepare below the journal entry to record the remittance and revenue recognized by Essex Travel Inc. on this transaction.

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