narc02
Aug 15, 2012, 08:18 AM
Hey guys!
This is a problem that I answered on my own. I am not sure if it is correct or that I am making sense with this, but let me show you the problem.
A Company receives a 12% commission from its suppliers for the sale of their products. The commissions received by the company is based on estimated sales which is $100,000.
However, the actual sales made by the company in September totaled to $80,000. The company operations end September 30 and uses the real accounts in recording deferrals.
So my answer is:
Dr. Unearned Commission Revenue $2400
Cr. Commission Revenue $2400
Since the first part of the problem states that the company based their commission on estimated sales so $100,000*0.12 = 12,000
But then we still have the actual sales which is $80,000 so:
$80,000*0.12 = $9,600
And then I got the difference $12,000-9600=$2400
Am I on the right track?
This is a problem that I answered on my own. I am not sure if it is correct or that I am making sense with this, but let me show you the problem.
A Company receives a 12% commission from its suppliers for the sale of their products. The commissions received by the company is based on estimated sales which is $100,000.
However, the actual sales made by the company in September totaled to $80,000. The company operations end September 30 and uses the real accounts in recording deferrals.
So my answer is:
Dr. Unearned Commission Revenue $2400
Cr. Commission Revenue $2400
Since the first part of the problem states that the company based their commission on estimated sales so $100,000*0.12 = 12,000
But then we still have the actual sales which is $80,000 so:
$80,000*0.12 = $9,600
And then I got the difference $12,000-9600=$2400
Am I on the right track?