A salesperson makes a 5% commission on every sale they make in the month of January, but their commission isn’t paid until February. This means that if they sell $100 worth of products in January, the company will pay them $5 in February.
An employee earns a bonus of $10,000 in 2019 based on their performance in the workplace. The bonus isn’t paid out to them until 2020. When will the bonus be recorded on the income statement?
Let’s say a full time hourly employee’s pay period ends on April 20th, but they didn’t get paid until May 3rd. This expense needs to be recorded in which month?
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