Answer: Not Sound as Company does not benefit as a Whole.
Explanation:
This question alludes to the presence of Divisions in a company tasked with producing different segments of a good.
One Division makes a segment of the good and transfers it for a price to the other division so that they may be able to show Revenue on their books.
The reasoning of the CEO of Lexington is flawed because if she chooses the highest feasible Transfer Fee for the goods it will be good for the Division doing the Transferring because they make more revenue.
However, it will increase the cost of those being transferred to by the same amount that it increase the revenue of the Division transferred from.
As a result, the increase in Cost and the Increase in Revenue in the two divisions will cancel each other out meaning that the company did not benefit.
Answer:
The amount Nenn debited to write off actual bad debt is $17,000
Explanation:
Please see computation below
Given that;
Beginning balance of allowance for uncollectible = $180,000
Ending balance of allowance for uncollectible = $190,000
Bad debt expenses reported = $27,000
With regards to the above information,
the net write off for actual bad debts is
= $180,000 + $27,000 - $190,000
= $17,000
Companies report prior period adjustments, net of any income tax effects in the single-step income statement.
A single step income statement is one of two commonly used formats for the income statement or profit and loss statement. It uses only one subtraction to arrive at net income. On the other hand, a multi-step statement reveals the company's gross profit, which is the difference between its sales revenue and its cost of goods sold, and operating profit, which is the difference between its gross profit and its operating expenses.
Breakeven point in units=
Fixed cost÷[selling price-variable cost]
Breakeven point in units
=750÷(3.75−1.25)
=300 units
It was an art form in Egypt as well as in Greece<span />
