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A company sells a particular product only in the last month of its fiscal year. The...

A company sells a particular product only in the last month of its fiscal year. The company uses commission agents for such sales and pays them 5% of their net sales 30 days after the sales are made. The agents' sales were $20million. Experience indicates that 10% of the sales are usually not collected and 3% are returned in the first month of the new year. The auditor would expect the year-end balance in the accrued commissions payable account to be

$920,000.

$970,000

$1,552,000

$900,000

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