Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Problem 3-7A (Algo) Terry McNutt, a single employee with two dependents, is paid $7.50 per hour and receives a commission on net sales. He does

image text in transcribed
image text in transcribed
image text in transcribed
Problem 3-7A (Algo) Terry McNutt, a single employee with two dependents, is paid $7.50 per hour and receives a commission on net sales. He does not receive a commission until his net sales exceed $150,000. Once the minimum net sales are reached, he receives a 1 percent commission on all of his sales at Skidoo Sports. During the week of January 24, he sold $91,000 of ski equipment; however, he had $1,500 of returns from the prior week's sales. Company policy requires that commissions on sales returns are deducted from the employee's pay, regardless of current commission earnings. Required: Compute Terry's gross pay for the 40-hour weekly pay period (Negative amount(s) should be indicated by a minus sign.) Company Skidoo Sports Period Ended: 1/24/20XX Hourly Rate Regular Earnings Commissions Name Terry McNutt Filing Status S-2 No. of Regular Hours 40.00 Gross Earnings $ 285.00 Problem 3-8A (Algo) Renata McCarter, an outside sales representative for Alinda Publications, receives 7 percent commission on all new magazine subscriptions she sells in her sales territory. During the week of March 27, she sold $14,500 of new subscriptions and worked 40 hours Required: 1. What is her gross pay? 2. Is she subject to minimum wage laws? 1. 2 Gross pay Is she subject to minimum wage laws? Telemarketers receive $10 commission on all new customers that sign up for cell phone service through Movill Networks. Each telemarketer works 40 hours. The company ran a competition this week to see who could sign up the most new people and the winner would get a bonus of $46. Because these employees are paid solely on commission, the employer must ensure that they earn the federal minimum wage for 40 hours each week. Required: Compute the gross pay for each of the following outbound sales representatives. Enter difference when the commission pay is less than the gross pay at minimum wage. Employee Total Commission Difference Between Minimum Pay and Commission (If the minimum is not met) Total Gross Pay S. McCulloch F. Odoll S. Heller V. Caro Number of New Customers Signed 33 26 43 28

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Quest For A Science Of AccountingAn Anthology Of The Research Of Robert R. Sterling

Authors: Thomas A. Lee, Peter W. Wolnizer

1st Edition

0367698196, 9780367698195

More Books

Students also viewed these Accounting questions

Question

Find RIN in Figure P416. is www R Bix RIN FIGURE P4-16

Answered: 1 week ago

Question

Explain the accounting procedures for issuing shares of stock?

Answered: 1 week ago

Question

What is the use of bootstrap program?

Answered: 1 week ago

Question

What laws have been passed to legislate ethics?

Answered: 1 week ago