Lee Cheol San Company 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 P15,000. Advances are charged to commission expense, and reconciliations against commissions are prepared quarterly. Net Sales for the year ended March 31, 2020 were P15,000,000. The unadjusted balance in the commissions expense account on March 31, 2020 was P400,000. March advances were paid on April 3, 2020. In its income statement for the year ended March 31, 2020, what amount should Lee Cheol San report as commission expense? A. P400,000 B. P415,000 C. P450,000 D. P465,000

Lee Cheol San Company 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 P15,000. Advances are charged to commission expense, and reconciliations against commissions are prepared quarterly. Net Sales for the year ended March 31, 2020 were P15,000,000. The unadjusted balance in the commissions expense account on March 31, 2020 was P400,000. March advances were paid on April 3, 2020. In its income statement for the year ended March 31, 2020, what amount should Lee Cheol San report as commission expense? A. P400,000 B. P415,000 C. P450,000 D. P465,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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