EXPENSES CONTROL
Question One
Claudius operates a bill payment and
cambio facility in Black River. He earns
commission at a rate of 5% on his
transactions. For the year 2021 his
transactions totaled $5,400,000. In
January his insurance account opened
was a prepayment of $20,000. During the
year he paid a total of $200,000 from
bank for insurance and had collected all of
his commission for the year. At year end
he owed $30,000 on his insurance.
How much should he show as insurance
expense for the year?