Duke Company pays its outside salespersons fixed monthly salaries and commissions based on net sales. Sales commissions are computed and paid on a monthly basis (in the month following the month of sale) and the fixed salaries are treated as advances against commissions. However, if the fixed salaries for salespersons exceed their sales commissions earned for a month, such excess is not charged back to them. Pertinent data for the month of March 2020 for the three salespersons are as follows: Fixed salaries Net sales Commissions rate Marissa 100,000 900,000 10% Emma 150,000 2,500,000 10% Jocelyn 250,000 4,000,000 15%
Duke Company pays its outside salespersons fixed monthly salaries and commissions based on net sales. Sales commissions are computed and paid on a monthly basis (in the month following the month of sale) and the fixed salaries are treated as advances against commissions. However, if the fixed salaries for salespersons exceed their sales commissions earned for a month, such excess is not charged back to them. Pertinent data for the month of March 2020 for the three salespersons are as follows:
|
|
Fixed salaries |
Net sales |
Commissions rate |
|
Marissa |
100,000 |
900,000 |
10% |
|
Emma |
150,000 |
2,500,000 |
10% |
|
Jocelyn |
250,000 |
4,000,000 |
15% |
What should Duke Company accrue for sales commissions at March 31, 2020?
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