Ask Experts Questions for FREE Help !
Ask
    zoomzoom's Avatar
    zoomzoom Posts: 2, Reputation: 1
    New Member
     
    #1

    Nov 27, 2007, 12:35 PM
    Car sales and draws - how does it work?
    If a car dealership offers the sales person a montly salary or draw, how does this work? Does the money get paid back to the car dealership?:confused:
    Fr_Chuck's Avatar
    Fr_Chuck Posts: 81,301, Reputation: 7692
    Expert
     
    #2

    Nov 27, 2007, 04:44 PM
    The salesman pays it back. A draw is nothing but a loan. If you take 500 a week as a draw, and lets say you sell enough for 400 commission this week, you are borrowing 100 that week. So if you sell 1000 next week, and you take your 500 draw, the other 500 goes to pay back previous draws.

    If you leave the company owing money, you will be expected to pay back.

Not your question? Ask your question View similar questions

 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Looking for cartoon about boy who draws dogs who come to life and get him in trouble! [ 9 Answers ]

I have been trying to find the name of this cartoon movie or show for so long!! It's got a boy or a girl or a pair of siblings who are drawing in their rooms... they draw two dogs and they come to life and get them in trouble in the backyard (they spraythe hose) and in the grocery store. I can't...

Draws on Commissions should be what kind of an account? [ 1 Answers ]

What kind of an account should Draws on Commissions be for salesmen? It is currently entered as "Other Current Assets" and I have been told it should be an expense account.

High Pressure Sales with Private Sales Clubs [ 4 Answers ]

To Whom: Is it legal in the state of Rhode Island/Connecticut for a private sales club (Direct Buy) to force a prospective member to join immediately after a forced one hour sales pitch? Direct Buy instructs their prospective customers that if they don't apply for membership immediately they...

401K draws and Income tax reporting [ 6 Answers ]

I requested a draw from my 401K on 12/28/2006; it was pulled from my 401K account by Fidelity, but they didn't deposit it into my checking account via EFT until 1/2/2007. Is this taxable income for 2006; Fidelity reported it on a 2006 1099-R? I think it is taxable income for 2007 since I didn't...


View more questions Search