A marine company pays its sales personnel 6% commission of the selling price of each yacht.During November 2013,yacht sales totaled $20,400,000.During December Year 1,sales totaled $25,100,000.Because its policy is to pay commissions only in the month after the sales,the company paid commissions during December for November Year 1.During January Year 2,the company paid its sales people commissions on December Year 1 sales.
A) If the cash basis of accounting is used, how much commission expense is reported on the income statement for December Year 1?

Question

A marine company pays its sales personnel 6% commission of the selling price of each yacht.During November 2013,yacht sales totaled $20,400,000.During December Year 1,sales totaled $25,100,000.Because its policy is to pay commissions only in the month after the sales,the company paid commissions during December for November Year 1.During January Year 2,the company paid its sales people commissions on December Year 1 sales.
 A) If the cash basis of accounting is used, how much commission expense is reported on the income statement for December Year 1?

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The Answer of A marine company pays its sales personnel 6% commission of the selling price of each yacht.During November 2013,yacht sales totaled $20,400,000.During December Year 1,sales totaled $25,100,000.Because its policy is to pay commissions only in the month after the sales,the company paid commissions during December for November Year 1.During January Year 2,the company paid its sales people commissions on December Year 1 sales.
 A) If the cash basis of accounting is used, how much commission expense is reported on the income statement for December Year 1?

A Marine Company Pays Its Sales Personnel 6% Commission of the Selling