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Fay Corp. pays its outside salespersons 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 salespersons exceed their sales commissions earned for a month, such excess is not charged back to them. Pertinent data for the month of March for the three salespersons are as follows: Fixed Net Commission Salesperson Salary Sales Rate A $10,000 $ 200,000 4% B 14,000 400,000 6% Cc 18,000 600,000 6% Totals $42,000 $1,200,000 What amount should Fay accrue for sales commissions payable at March 31?

Sagot :

anthougo

The amount that Fay Corp. should accrue for Sales Commissions Payable at March 31 is B) $28,000.

Data and Calculations:

Sales-      Fixed             Net Sales   Commission  Computed       Accrued

person    Salary                                     Rate        Commission  Commission

 (a)            (b)                       (c)                (d)          (e) = (c) x (d)     (f) = (e) - (b)                                                                                                      

A            $10,000         $ 200,000         4%            $8,000                  $0

B              14,000             400,000         6%          $24,000            $10,000

Cc           18,000             600,000          6%          $36,000            $18,000

Totals  $42,000        $1,200,000                                                   $28,000

Question Options:

A) $26,000

B) $28,000

C) $68,000

D) $70,000

Thus, the amount Fay Corp accrued as Sales Commission for March is $28,000.

Lear more: https://brainly.com/question/6076645

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