C is corrent. The requirement is the total amount of sales commissions payable to be accrued on 4/30/Y2. No sales commissions are due to salesperson A because his commissions earned ($100,000 × 4% – $4,000) are less than his fixed salary ($5,000). Note that the excess of the fixed salary over commissions earned is not charged back against A. Commissions totaling $14,000 are due to salespersons B and C as computed below. | | Commissions earned | | Fixed salary paid | | Commissions payable | | B | ($200,000 × 6%) | – | 7,000 | = | 5,000 | | C | ($300,000 × 6%) | – | 9,000 | = | 9,000 | | | | | | | $14,000 |
A is incorrect because No sales commissions are due to salesperson A because his commissions earned ($100,000 × 4% – $4,000) are less than his fixed salary ($5,000). Note that the excess of the fixed salary over commissions earned is not charged back against A. Commissions totaling $14,000 are due to salespersons B and C as computed below. | | Commissions earned | | Fixed salary paid | | Commissions payable | | B | ($200,000 × 6%) | – | 7,000 | = | 5,000 | | C | ($300,000 × 6%) | – | 9,000 | = | 9,000 | | | | | | | $14,000 |
B is incorrect because no sales commissions are due to salesperson A because his commissions earned ($100,000 × 4% – $4,000) are less than his fixed salary ($5,000). Note that the excess of the fixed salary over commissions earned is not charged back against A. Commissions totaling $14,000 are due to salespersons B and C as computed below. | | Commissions earned | | Fixed salary paid | | Commissions payable | | B | ($200,000 × 6%) | – | 7,000 | = | 5,000 | | C | ($300,000 × 6%) | – | 9,000 | = | 9,000 | | | | | | | $14,000 |
D is incorrect because No sales commissions are due to salesperson A because his commissions earned ($100,000 × 4% – $4,000) are less than his fixed salary ($5,000). Note that the excess of the fixed salary over commissions earned is not charged back against A. Commissions totaling $14,000 are due to salespersons B and C as computed below. | | Commissions earned | | Fixed salary paid | | Commissions payable | | B | ($200,000 × 6%) | – | 7,000 | = | 5,000 | | C | ($300,000 × 6%) | – | 9,000 | = | 9,000 | | | | | | | $14,000 |
|
