Author Question: Suzy Queue hires a salesperson for her business. Suzy agrees to pay the salesperson a commission of ... (Read 155 times)

cagreen833 · **on:** Jul 5, 2018

Suzy Queue hires a salesperson for her business. Suzy agrees to pay the salesperson a commission of 10 percent of sales. By the end of the first month, the salesperson has done 50,000 of sales.

Suzy wants to prepare accurate financial statements at the end of the month, but has not yet paid the salesperson. What journal entry should she make before preparing her financial statements for the month?
a. debit commissions expense (5,000); and credit commissions payable (5,000)
b. debit prepaid commissions (5,000); and credit commissions payable (5,000)
c. debit commissions expense (50,000); and credit cash (50,000)
d. debit prepaid commissions (5,000); and credit cash (5,000)

Question 2

When Richard Miller purchases a fishing pole through Amazon.com, he is utilizing
a. B1C ecommerce.
b. B2B ecommerce.
c. B2C ecommerce.
d. B1B ecommerce.