Fay Corp. pays its outside salespersons fixed monthly salaries as well as commissions on net sales. Sales commissions are paid in the month following the month of sale, while the fixed salaries are expensed,but considered advances against commissions. Howwever, if salespersons' fixed salaries exceed their sales commissions earned for a month, such excess is not returned to the company. Pertinant data for the month of March is as follows.

	Fixed salary	Net sales	rate
A	$10,000	$200,000	4%
B	$14,000	$400,000	6%
C	$18,000	$600,000	6%

What amount should Fay accrue as a debit to sales commissions expense and a credit to sales commissions payable at March 31st?

Select one:

a. $68,000

b. $28,000

c. $70,000

d. $26,000