Question
Wheaton Rubber Co. pays its salespersons salaries based on fixed monthly salaries and commissions on net sales. A fixed salary is paid each month and
Wheaton Rubber Co. pays its salespersons salaries based on fixed monthly salaries and commissions on net sales. A fixed salary is paid each month and is treated as an advance against commissions earned in that month. Sales commissions are computed on a monthly basis and the amount exceeding the fixed salary advance, is paid in the month following the month of sale. However, if the fixed salaries for salespersons exceed their sales commissions earned for any month, such excess is not charged back to them. Pertinent data for the month of March 2022 for the three salespersons employed are as follows:
Salesperson Fixed salary Net Sales % Commission
A | $10,000 | $ 200,000 | 6% |
B | 14,000 | 400,000 | 5% |
C | 18,000 | 900,000 | 4% |
Totals | $42,000 | $1,500,000 |
What amount should Wheaton accrue for sales commissions payable at March 31, 2022?
Select one:
a.
$70,000.
b.
$68,000.
c.
$28,000.
d.
$26,000.
e.
$42,000.
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