Terry McNutt, a single employee with two withholding allowances, is paid $11.50 per hour and receives commission on net sales. He does not receive a commission until his net sales exceed $150,000. Once the minimum net sales is reached, he receives 2 percent commission on all of his sales at Skidoo Sports. During the week of January 23, he sold $83,000 of ski equipment; however, he had $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. (Negative amount(s) should be indicated by a minus sign.)

Terry McNutt, a single employee with two withholding allowances, is paid $11.50 per hour and receives commission on net sales. He does not receive a commission until his net sales exceed $150,000. Once the minimum net sales is reached, he receives 2 percent commission on all of his sales at Skidoo Sports. During the week of January 23, he sold $83,000 of ski equipment; however, he had $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. (Negative amount(s) should be indicated by a minus sign.)

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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