Answer:
$60,000
Explanation:
In 2017, uncollectible accounts receivable were written of $90,000, the mount more than Allowance for Doubtful Accounts balance on 1 January 2017. The company must make the entry:
Debit Allowance for Doubtful Accounts: $36,000
Debit Bad debt expense: $54,000
Credit Uncollectible accounts receivable: $90,000
So, before adjunsting, Allowance for Doubtful Accounts had balance of $0 on 31 December 2017.
The allowance should be: 10%x $600,000 = $60,000
and the required adjustment to the Allowance for Doubtful Accounts at December 31, 2017: $60,000-$0=$60,000
Forward buying.
Forward buying is where a customer will be incentivized to purchase more than they need or intended because of certain marketing or pricing initiatives, such as product promotions and quantity discounts (like bulk sales). This option allows the seller to front-load revenue earlier than usual, despite offering the products at a reduced cost through such initiatives and price fluctuations.
Answer: 1000 is the total wholesaler current cycle plus pipleline inventories.
Explanation: product X from a plant to a Wholesaler are made in lots of 600. Average demand of X is 100 units per week.
lead time from the plant is 4 weeks, So we have 100x4 =400
600+400=1000
Answer:
a) Record transfer of cost of completed job to Finished Goods.
b) Record transfer of cost of completed job to Finished Goods.
a and b
Debit Credit
Finished goods inventory $10,500
Work-in-process inventory $10,500
c) Record the cost of goods sold.
Debit Credit
Cost of goods sold $10,500
Finished goods inventory $10,500
d) Record sale price of delivered job paid in cash.
Debit Credit
Cash $14,900
Sales $14,900
Explanation:
a and b
Cost in the Work in process is tranferred to the finished goods goods account by debiting the Finished goods account due to its debit nature and crediting the work in process account.
c
On the sales of car the cost is transferred to the cost of goods sold account to reduce the inventory of finished goods value.
d
$14,900 Cash is received against the sale of the car.