Required: Compute Terry's gross pay for the 40-hour weekly pay period. (Negative amount(s) should be indicated by a minus sign.) Company Name Terry McNutt Skidoo Sports Filing Status Dependents Hourly Rate Number of Regular Hours Period Ended: Regular Earnings 1/24/20XX Commissions Gross Earnings
Required: Compute Terry's gross pay for the 40-hour weekly pay period. (Negative amount(s) should be indicated by a minus sign.) Company Name Terry McNutt Skidoo Sports Filing Status Dependents Hourly Rate Number of Regular Hours Period Ended: Regular Earnings 1/24/20XX Commissions Gross Earnings
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![### Problem 3-7A (Algo)
**Terry McNutt**, a single employee with two dependents under the age of 17, is paid $11.00 per hour and receives a commission on net sales. He does not receive a commission until his net sales exceed $150,000. Once the minimum net sales are reached, he receives a 2 percent commission on his sales at Skidoo Sports. During the week of January 24, he sold $94,000 of ski equipment; however, he had $1,200 of returns from the prior week's sales. Company policy requires that commissions on sales returns are deducted from the employee's pay, regardless of current commission earnings.
**Required:**
Compute Terry's gross pay for the 40-hour weekly pay period. (Negative amount(s) should be indicated by a minus sign.)
#### Table: Employee Payroll Calculation for Period Ended 1/24/20XX
| Company | Skidoo Sports |
|-------------|---------------|
| **Name** | Filing Status | Dependents | Hourly Rate | Number of Regular Hours | Regular Earnings | Commissions | Gross Earnings |
|-------------|---------------|------------|-------------|-------------------------|------------------|-------------|----------------|
| Terry McNutt| Single | 2 | $11.00 | 40 | \_\_\_\_ | \_\_\_\_ | \_\_\_\_ |
---
In this problem, you will calculate Terry's gross pay for a given week. Understand the components of his compensation including his hourly wage and any applicable commissions.
#### Steps to Calculate Gross Pay:
1. **Calculate Regular Earnings:**
Terry is paid $11.00 per hour.
\[
\text{Regular Hours} = 40
\]
\[
\text{Regular Earnings} = \text{Hourly Rate} \times \text{Number of Regular Hours}
\]
\[
\text{Regular Earnings} = \$11.00 \times 40 = \$440.00
\]
2. **Calculate Commissions:**
- Determine if Terry's net sales exceed the $150,000 threshold.
- Net sales for the week = $94,000
- Returns = $1,200
Since the net sales ($94,000 - $1,200) are less than $150,000,](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F336519c0-4efa-418c-be83-f84a913a2a79%2F2c036786-b5d5-4832-a5f0-c1ef2d3a2c79%2Fe558mlo_processed.jpeg&w=3840&q=75)
Transcribed Image Text:### Problem 3-7A (Algo)
**Terry McNutt**, a single employee with two dependents under the age of 17, is paid $11.00 per hour and receives a commission on net sales. He does not receive a commission until his net sales exceed $150,000. Once the minimum net sales are reached, he receives a 2 percent commission on his sales at Skidoo Sports. During the week of January 24, he sold $94,000 of ski equipment; however, he had $1,200 of returns from the prior week's sales. Company policy requires that commissions on sales returns are deducted from the employee's pay, regardless of current commission earnings.
**Required:**
Compute Terry's gross pay for the 40-hour weekly pay period. (Negative amount(s) should be indicated by a minus sign.)
#### Table: Employee Payroll Calculation for Period Ended 1/24/20XX
| Company | Skidoo Sports |
|-------------|---------------|
| **Name** | Filing Status | Dependents | Hourly Rate | Number of Regular Hours | Regular Earnings | Commissions | Gross Earnings |
|-------------|---------------|------------|-------------|-------------------------|------------------|-------------|----------------|
| Terry McNutt| Single | 2 | $11.00 | 40 | \_\_\_\_ | \_\_\_\_ | \_\_\_\_ |
---
In this problem, you will calculate Terry's gross pay for a given week. Understand the components of his compensation including his hourly wage and any applicable commissions.
#### Steps to Calculate Gross Pay:
1. **Calculate Regular Earnings:**
Terry is paid $11.00 per hour.
\[
\text{Regular Hours} = 40
\]
\[
\text{Regular Earnings} = \text{Hourly Rate} \times \text{Number of Regular Hours}
\]
\[
\text{Regular Earnings} = \$11.00 \times 40 = \$440.00
\]
2. **Calculate Commissions:**
- Determine if Terry's net sales exceed the $150,000 threshold.
- Net sales for the week = $94,000
- Returns = $1,200
Since the net sales ($94,000 - $1,200) are less than $150,000,
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