PDA

View Full Version : A company insurance salesman sold a life insurance policy to a client for a premium o


MelanieFay
Aug 11, 2012, 04:10 PM
A company insurance salesman sold a life insurance policy to a client for a premium of $25,000. The agency billed the client for the policy and is entitled to a commission of 20%.

How do I do an adjusting journal entry for this question? Will it have two parts to it?

paraclete
Aug 11, 2012, 05:39 PM
Firstly an entry can be as large or as compact as you like as I see it this one has four legs
Sales, commission payable, accounts receivable and sales commissions