Shah is a retail company specializing in men’s hats. Its budget director prepared the list of expected operating expenses that follows. All items are paid when the expenses are incurred except sales commissions and utilities, which are paid in the month after they are incurred. July is the first month of operations, so there are no beginning account balances.

Required

a. Prepare a schedule of cash payments for selling and administrative expenses.

b. Determine the amount of utilities payable as of September 30.

c. Determine the amount of sales commissions payable as of September 30.

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July August September Salary expense $12,000 $12,000 $12,000 Sales commissions (4 percent of sales) 1,600 1,500 1,800 Supplies expense 360 400 440 Utilities 1,200 1,200 1,200 Depreciation on store equipment 2,600 2,600 2,600 Rent 6,600 6,600 6,600 Miscellaneous 720 720 720 Total S&A expenses before interest $25,080 $25,020 $25,360