Answer:
The amount worth $6,000 will be debited to the account in Year 2
Explanation:
When the uncollectible accounts are written off, then the debit is created to the allowance and the credit to the accounts receivable. The starting balance in the allowance account is $90,000 and the ending balance is $100,000 and the expense of bad debt is $16,000
The write off is computed as:
Write off = Beginning balance + Bad debt expense - Ending balance
= $90,000 + $16,000 - $100,000
= $106,000 - $100,000
= $6,000
Therefore, the amount of $6,000 is to be write off in Year 2
Answer: Warrantly
directs manufacturers and sellers to detail the service coverage, terms, and exclusions on products.
Providing the customer a choice between a refund or a replacement
Answer: $4.38
Explanation:
Conversion costs are based on completed units so those units that are yet to be completed will be converted into equivalent units.
Units produced = Units completed and transferred out + equivalent WIP
= 169,000 + (26,000 * 79%)
= 169,000 + 20,540
= 189,540 units
Total Conversion costs = beginning conversion costs + conversion costs added during period
= 103,000 + 726,925
= $829,925
Conversion cost per equivalent share
= 829,925/189,540
= 4.3786
= $4.38
