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The Ritz Manor is a popular seaside resort. A double room cost $220 for one night. To reserve a room, guest must pay one night’s stay in advance. On each floor of the hotel, Vendalite company operates vending machines with energy bars, juices, and other snacks for guest. Vendalite stocks the machines and collects revenue every week. Total average weekly revenue from these machines is $720. The Ritz manor is entitled to 30 percent of the revenue from the machines. Vendalite sends a check to Ritz Manor once at the end of each quarter fro the resorts share of the revenue. Based on this information, what type of adjusting entries does Ritz manor have? how are amounts of these adjustment determined? Which accouts are affected?
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