Terry, a single employee with two dependents under the age of 17, is paid $16.50 per hour and receives a commission on net sales. No commission is received until net sales exceed $150,000. Once the minimum net sales are reached, the 2 percent commission on sales applies. During the week of January 28, there were $83,000 of sales; however, $2,200 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. Note: Negative amount(s) should be indicated by a minus sign. Period Ended: 1/28/20XX Name Filing Status Dependents Hourly Rate Number of Regular Hours Regular Earrings Commissions Gross Earrings Terry S 2<17 S16.50 Total S0.00 S0.00 $0.00
Terry, a single employee with two dependents under the age of 17, is paid $16.50 per hour and receives a commission on net sales. No commission is received until net sales exceed $150,000. Once the minimum net sales are reached, the 2 percent commission on sales applies. During the week of January 28, there were $83,000 of sales; however, $2,200 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. Note: Negative amount(s) should be indicated by a minus sign. Period Ended: 1/28/20XX Name Filing Status Dependents Hourly Rate Number of Regular Hours Regular Earrings Commissions Gross Earrings Terry S 2<17 S16.50 Total S0.00 S0.00 $0.00
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Terry, a single employee with two dependents under the age of 17, is paid $16.50 per hour and receives a commission on net sales. No commission is received until net sales exceed $150,000. Once the minimum net sales are reached, the 2 percent commission on sales applies. During the week of January 28, there were $83,000 of sales; however, $2,200 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.
Note: Negative amount(s) should be indicated by a minus sign.
| Period Ended: | 1/28/20XX | ||||||
| Name | Filing Status | Dependents | Hourly Rate | Number of Regular Hours | Regular Earrings | Commissions | Gross Earrings |
| Terry | S | 2<17 | S16.50 | ||||
| Total | S0.00 | S0.00 | $0.00 |
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Transcribed Image Text:Terry, a single employee with two dependents under the age of 17, is paid $16.50 per hour and receives a commission on net sales. No
commission is received until net sales exceed $150,000. Once the minimum net sales are reached, the 2 percent commission on sales
applies. During the week of January 28, there were $83,000 of sales; however, $2,200 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.
Note: Negative amount(s) should be indicated by a minus sign.
Name
Terry
Totals
Filing Status
S
✓
Dependents
2<17
$
Answer is complete but not entirely correct.
Period Ended:
Hourly
Rate
16.50✔
Number of
Regular
Hours
160.00
$
$
Regular
Earnings
1/28/20XX
Commissions
2,640.00 $
2,640.00 $
(44.00)✓ $
(44.00) $
Gross
Earnings
2,596.00 X
2,596.00
Solution
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