How much was revenue to raymond

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Raymond's, a travel agency, chartered a cruise ship for two weeks beginning January 23, 2006, for $200,000. In return, the ship's owner agreed to pay all costs of the cruise. In 2005, Raymond's sold all available space on the ship for $260,000. It incurred $40,000 in selling and other costs in doing so. All the $260,000 was received in cash from passengers in 2005. Raymond's paid $50,000 as an advance payment to the ship owner in 2005.

Problem 1: How much, if any, of the $260,000 was revenue to Raymond's in 2005? Why? Does the question of whether passengers were entitled to a refund in 2006 if they canceled their reservations make any difference in the answer? Why?

Reference no: EM132669880

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