Business, 05.05.2020 06:13 RayQuan115

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, Year 1, were $15 million. The unadjusted balance in the commissions expense account on March 31, Year 1, was $400,000. March advances were paid on April 3, Year 1. In its income statement for the year ended March 31, Year 1, what amount should Zach report as commission expense?
A. $465,000
B. $450,000
C. $415,000
D. $400,000

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Zach Corp. pays commissions to its sales staff at the rate of 3% of net sales. Sales staff are not p...

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