Zach Corp. pays commissions to its sales staff at the rate of 3% of net...
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Zach Corp. pays commissions to its sales staff at the rate of 3% of net sales. Sales staff are not paid salaries but are given monthly advances of $15,000. Advances are charged to commission expense, and reconciliations against commissions are prepared quarterly. Net sales for the year ended March 31, 2017, were $15,000,000. The unadjusted balance in the commissions expense account on March 31, 2017, was $400,000. March advances were paid on April 3, 2017. In its Income Statement for the year ended March 31, 2017, what amount should Zach report as commission expense?
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