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 2013,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 2013.During January 2014,the company paid its sales people commissions on December 2013 sales.
A) If the cash basis of accounting is used, how much comuss sion expense is reported on the income statement for December 2013 ?

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 2013,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 2013.During January 2014,the company paid its sales people commissions on December 2013 sales.
 A) If the cash basis of accounting is used, how much comuss sion expense is reported on the income statement for December 2013 ?

Quizplus · Accepted Answer

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 2013,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 2013.During January 2014,the company paid its sales people commissions on December 2013 sales.
 A) If the cash basis of accounting is used, how much comuss sion expense is reported on the income statement for December 2013 ?

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