If a company earns a commission of 10% on sales totaling $200,000, how much additional revenue must be recorded if $8,000 was received before the fiscal year-end?

To determine the additional revenue that must be recorded, we first need to calculate the total commission earned based on the sales figure. With sales of $200,000 and a commission rate of 10%, the total commission would be $20,000 (which is calculated as 10% of $200,000).

Since $8,000 of the commission has already been received before the fiscal year-end, this amount needs to be considered when determining how much additional revenue should be recorded. The full commission amount earned is $20,000, but since $8,000 has already been received, the additional revenue that still needs to be recorded is the remaining balance of the total commission.

Calculating this gives us:

Total commission earned: $20,000 Amount received: $8,000 Remaining amount to be recorded: $20,000 - $8,000 = $12,000

Thus, the additional revenue that must be recorded is indeed $12,000. This recognition reflects the accrual accounting principle, which requires companies to record revenues when they are earned, regardless of when cash is received.