A Company Sells a Particular Product Only in the Last

question 55

Multiple Choice

A company sells a particular product only in the last month of its fiscal year. The company uses commission agents for such sales and pays them 6% of their net sales 30 days after the sales are made. The agents' sales were $10 million. Experience indicates that 10% of the sales are usually not collected and 2% are returned in the first month of the new year. The auditor would expect the year-end balance in the accrued commissions payable account to be:

• A)$528,000.
• B)$540,000.
• C)$588,000.
• D)$600,000.

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Definitions:

Serial Monogamy

A pattern of engaging in successive monogamous sexual relationships.

Friends With Benefits

A relationship between two individuals that includes sexual activity without the commitment of a traditional romantic relationship.

Transphobia

Transphobia encompasses negative attitudes, feelings, or actions directed towards transgender people or transsexuality in general, often resulting in discrimination, hatred, and social exclusion.

Homophobia

Prejudice or discrimination against individuals who are gay, lesbian, bisexual, or transgender, often stemming from fear or ignorance.