1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
dybincka [34]
3 years ago
9

Cambridge Co. uses the allowance method. During January 2019, Cambridge writes off a $640 customer account balance when it becom

es clear that the customer will never pay. The entry to record the write-off will:
a. not affect expenses in 2019.
b. decrease net income in 2019 by $640.
c. decrease net accounts receivable by $640.
d. decrease total assets by $640.
Business
1 answer:
yan [13]3 years ago
8 0

Answer:

The correct answer is option (a).

Explanation:

According to the scenario, computation of the given data are as follows:

Allowance method shows that, if account is written off, then Accounts receivable account gets credited and Allowance accounts gets debited.

Here, both accounts are or balance sheet items.

So, it will not affect any expenses account.

You might be interested in
Rina and Musashi are married, under the age of 65, and have four children under the age of 18. Musashi works full time and earns
Ipatiy [6.2K]

Answer: Not at all

Explanation:

5 0
3 years ago
All else equal, if there are diminishing returns, then which of the following is true if a country increases its capital by one
Romashka [77]

Answer:

A.

The output will rise by more than it did when the previous unit was added.

Explanation:

7 0
2 years ago
the percentage of totoal workers who are out of work but seeking jobs and willing to work is known as the ___ rate?
liubo4ka [24]

Answer:

the unemployment rate

4 0
3 years ago
Read 2 more answers
Comparing perfect first degree price discrimination to perfect competition one can conclude that: (i) Total social surplus is th
marta [7]

Answer:

C. Both (i) and (ii) are true

Explanation:

Under perfect price discrimination, consumer surplus doesn't exist since the supplier is selling the good or service at the maximum price that each consumer is willing to pay. This situation maximizes supplier surplus.

Under perfect competition, both supplier and consumer surplus exist.

Since total social surplus = supplier surplus + consumer surplus, total surplus should be the same in both situations.

5 0
2 years ago
Jackson Company produces plastic that is used for injection-molding applications such as gears for small motors. In 2016, the fi
valentina_108 [34]

Answer:

a.Income Statement using variable costing

                                                                     2016                 2017

Sales                                                     $7,872,000      $9,840,000

Less Cost of Sales                              ($1,338,240)      ($1,672,800)

Opening Stock                                     <em>        $0         </em>      <em> $334,560</em>

Add Cost of Goods Manufactured      <em>$1,672,800 </em>      <em>$1,338,240</em>

Less Closing Stock                              <em> ($334,560) </em>         <em>     $0</em>

Contribution                                        $6,533,760       $8,167,200

Less Expenses :

Fixed manufacturing costs                ($3,075,000)     ($3,075,000)

Selling Expenses : Variable                  ($862,920)      ($1,082,400)

Selling Expenses : Fixed                       ($500,000)       ($500,000)

Net Income / (loss)                               $2,095,840       $3,509,800

b.Income Statement using  absorption costing

                                                                     2016                 2017

Sales                                                     $7,872,000      $9,840,000

Less Cost of Sales                              ($3,798,240)      ($5,362,800)

Opening Stock                                     <em>        $0         </em>      <em> $949,560</em>

Add Cost of Goods Manufactured      <em>$4,747,800 </em>      <em>$4,413,240</em>

Less Closing Stock                              <em> ($949,560) </em>         <em>     $0</em>

Gross Profit                                           $4,073,760          $4,477,200

Less Expenses :

Selling Expenses : Variable                  ($862,920)      ($1,082,400)

Selling Expenses : Fixed                       ($500,000)       ($500,000)

Net Income / (loss)                                 $2,710,840       $2,894,800

c. Reconciliation of Absorption costing Net Income to variable costing profit

                                                                                   2016                      2017

Absorption Costing Net Income                           $2,710,840       $2,894,800

Fixed Manufacturing  Cost in Opening Stock             $0                $615,000

Fixed Manufacturing Cost in Closing Stock         ($615,000)               $0

Variable Costing Net Income                               $2,095,840       $3,509,800

Explanation:

Part a.

Under Variable Costing, Only Variable Manufacturing Costs are treated as Product costs. Fixed Manufacturing costs and All Non-Manufacturing Costs are treated as period costs.

Part b

Under Absorption Costing, Both Variable Manufacturing Costs  and  Fixed Manufacturing costs are treated as Product costs. All Non-Manufacturing Costs are treated as period costs.

Part c.

The difference between the Net Income under Absorption Costing and Variable Costing is due to Fixed Manufacturing Costs that are deferred in Inventory. This needs to be reconciled accordingly.

5 0
3 years ago
Other questions:
  • Are secretary most important employee in a business?
    14·1 answer
  • Y-1=5x2-25+3<br><img src="https://tex.z-dn.net/?f=y%20-%201%20%3D5x%20%5E%7B2%7D%20%20-%2025x%20%2B%203" id="TexFormula1" title=
    9·1 answer
  • Phoenix decorating company is responsible for designing and building many of the floral floats seen in the tournament of roses p
    10·1 answer
  • Limited decision making is used when purchasing frequently bought, low-cost items needing very little decision effort.
    11·1 answer
  • The primary reason entrepreneurs choose to incorporate is because of:
    8·1 answer
  • Which of the following is true?Select one:a. Overhead costs are often affected by many issues and are frequently too complex to
    9·1 answer
  • Who at Universal Studios hates FORBIDEN JURNY?
    9·1 answer
  • 1. What characteristics of sales promotions account for the high levels of expenditures that have been allocated to them in rece
    7·1 answer
  • Rousey, Inc., had a cash flow to creditors of $16,380 and a cash flow to stockholders of $6,740 over the past year. The company
    15·1 answer
  • The Industrial Revolution was characterized by a(n) Group of answer choices migration of manufacturing jobs from the Midwest and
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!