What is the amount of sales commissions payable that the company will report on its pro forma balance sheet at the end of the fourth quarter?
A) $5,500
B) $5,000
C) $5,300
D) $11,000

Question

Quizplus · Accepted Answer

Since sales commissions are paid in cash in the month following the month in which the expense is recognized,the commissions payable at December 31 equal the December sales commissions of $5,300.

What Is the Amount of Sales Commissions Payable That the Company