The Ritz Manor is a popular seaside resort. A double room costs $220 for one night. In order to reserve a room, guests 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 guests. 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% of the revenue from the machines. Vendalite sends a check to the Ritz Manor once at the end of each quarter for the resort’s share of the revenue.

Based on this information, what type of adjusting entries does Ritz Manor have?
How are the amounts of the adjustments determined?
Which accounts are affected?

MaggieMouse

Rooms: when the customer reserved a room and paid $220 upfront, Dr. cash Cr. unearned revenue. Assuming it's non-refundable deposit, . When the customer checked out after 3 nights, Dr. Unearned Revenue, Cr. Revenue for 1 nights, Dr. Cash, Cr. Revenue for 2 nights.

Vending machine: Assuming the vending machine company does not funish a report of the amount they collected each week, by the end of the month, Dr. receivable, Cr. revenue, using the estimated amount, $720x30%xnumber of weeks. At quarter-end when cash is received, make a reverse entry for the accrual, then Dr. Cash, Cr. revenue, using the amount actually received from the vending mahcine company.