Lee Cheol San Company pays commissions to its sales staff at the rate of 3% of net sales. Sales staff are not paid salaries but are given monthly advances of P15,000. Advances are charged to commission expense, and reconciliations against commissions are prepared quarterly. Net Sales for the year ended March 31, 2020 were P15,000,000. The unadjusted balance in the commissions expense account on March 31, 2020 was P400,000. March advances were paid on April 3, 2020. In its income statement for the year ended March 31, 2020, what amount should Lee Cheol San report as commission expense? A. P400,000 B. P415,000 C. P450,000 D. P465,000
Lee Cheol San Company pays commissions to its sales staff at the rate of 3% of net sales. Sales staff are not paid salaries but are given monthly advances of P15,000. Advances are charged to commission expense, and reconciliations against commissions are prepared quarterly. Net Sales for the year ended March 31, 2020 were P15,000,000. The unadjusted balance in the commissions expense account on March 31, 2020 was P400,000. March advances were paid on April 3, 2020. In its income statement for the year ended March 31, 2020, what amount should Lee Cheol San report as commission expense? A. P400,000 B. P415,000 C. P450,000 D. P465,000
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter9: Current Liabilities And Contingent Obligations
Section: Chapter Questions
Problem 8RE: Borat Company gives annual bonuses after the end of the year. Borat computes the bonuses based on...
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