Fay Corp. pay its outside salesperson fixed monthly salaries and commissions on net sales. Sales commissions are computed and paid on a monthly basis (in the month following the month of sale), and the fixed salaries are treated as advances against commissions. However, if the fixed salaries for salesperson exceed their sales commissions earned for a month, such excess is not charged back to them. Pertinent data for the month of March 20x5 for the three salespersons are as follows:

Sales Person Fixed Salary Net Sales Commission Rates

A 10,000 200,000 4%

B 14,000 400,000 6%

C 18,000 600,000 6%

TOTALS 42,000 1,200,000

What amount should Fay accrue for sales payable at March 31, 20x5? show the solution and explain.