# Thread: commission question

1. ## commission question

doug wilson earned a commission of $2036.88 for March. If his rate of commission is 11.25% of net sales, and returns and allowances were 8% of gross sales, what were Doug's gross sales for the month? 2. I don't fully understand this question as posted because I am not an Accountant or Economist or anybody who deals with accounting. I will solve it as I understand the question. My understanding might not be correct, but this solution is still based on my understanding. Four terms are mentioned: commission on Net sales, retuns, allowances, and gross sales. Based on those, my understanding is Net sale = (gross sale) minus (returns plus allowances) So, Net sales = (100 -8)% of Gross sales Net = 92% of Gross ----***$2036.88 = 11.25% of Net
2036.88 = 11.25% of (92% of Gross)
2036.88 = (0.1125)(0.92)Gross
Gross = (2036.88) / (0.1125)(0.92)
Gross = \$19,680.00 ---------------answer.

3. ## thanks for help

thank you for all the help. it makes complete sense now that you put it into propectives like that, thanks again, i will probably have alot more as the year moves on haha, so hopefully i'll be hearing from you again on my next problem, take care