help needed

October November December Budgeted S&A Expenses Salary Expense 24,000 24,500 25,000 Sales Commissions 5% of Sales 12,000 12,500 12,300 Insurance Expense 9,000 9,000 9,000 Rent 10,800 10,800 10,800 Depreciation on equipment 12,000 12,000 12,000 Utilities 1,800 2,000 2,200 Total Operating Expenses 69,600 70,800 71,300 Schedule of Cash Payments for S&A Expenses Salary Expense ? 24,500 ? 1008 of Prior Month Sales 12,100 2 ? Commissions Insurance Expense 9,000 9,000 9,000 Rent ? ? 10,800 1008 of Prior Months Utilities 1,900 ? 2 Expense Total Payments for S&A Expenses ? ? 7 What is the amount of sales commissions payable that the company will report on its pro forma balance sheet at the end of the fourth quarter? Multiple Choice $12,500 $12,300 $12,000