Zach Corp. pays commissions to its sales staff at the rate of 3% of net...
50.1K
Verified Solution
Link Copied!
Question
Accounting
Zach Corp. 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 $15,000. Advances are charged to commission expense, and reconciliations against commissions are prepared quarterly. Net sales for the year ended March 31, 2017, were $15,000,000. The unadjusted balance in the commissions expense account on March 31, 2017, was $400,000. March advances were paid on April 3, 2017. In its Income Statement for the year ended March 31, 2017, what amount should Zach report as commission expense?
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
