A Company Sells a Particular Product Only in the Last

question 20

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.
• $10,000,000 × 98% = $9,800,000 Net Sales × 6% commission percentage = $588,000 estimated accrued commissions payable.

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Definitions:

Untreated Individuals

Individuals who have not received any form of medical treatment, intervention, or therapy for their conditions or problems.

Effect Sizes

A quantitative measure of the magnitude of the experimental effect, indicating the difference between two groups in a study.

Motivational Interviewing

A therapy method that assists people in discovering the drive to make beneficial choices and achieve set objectives.

Established Therapy

A therapeutic intervention that is widely accepted and used within the clinical community, often supported by a substantial body of research evidence.