Answer: The journal entries to record the 2017 estimate for bad debts is Debit Bad debt expense $140; Credit Allowance for doubtful accounts $140.
Explanation: Given that the amount in accounts receivable is $2,000, after the collections, CC Sunglasses Co. estimates that 7% of this amount may not be collected. Therefore, 7% of $2,000 is $140. And the accounting entries to recognize this bad debt expense is as provided in the Answer section above. However, the net balance in the accounts receivable would be $1,860 ($2,000 - $140), to show the realizable value as at December 31, 2017.
Answer:
The correct option is C
Explanation:
Cold site is one of the kind of the location of the business, which is usually worn or used for the proceeding of disaster as a backup while in the disruptive operational in the normal site of the business.
In short, it is stated as an office for the sites which needed or required backup because it have the required equipment, which will resume or direct the operations. But there is problem that it does not happen always or regularly.
So, the one which is a cost site that is very low is the cold site as it does not support the requirements of the quicker recovery.
Answer:
The correct answer is letter "A": Analytical review.
Explanation:
Substantive procedures are those steps auditors take to confirm the accuracy of the Financial Statements being checked. This activity aims to confirm if there are transactions recorded incorrectly in a company's books. Some examples of substantive procedures are <em>bank account confirmation, observation of the firm's physical inventory, </em>or<em> analytical review of the assets, liabilities, and revenue</em>.
<u>Answer:</u> Reciprocal method
<u>Explanation:</u>
Under reciprocal method the cost incurred is allocated to other departments using some equations. Using this method the costs can be accurately distributed. It is also a complicated method of allocating the costs. The service department costs are allocated to and from other service departments.
The overhead costs are allocated based on the objective method. The service department costs can be allocated to the production departments and other departments. The efficiency of the service departments can also be identified.
Answer:
Identification of Features Applying More to Job Order Operations, Process Operations, or Both:
Features
1. Cost object is a process. Process Operations
2. Measures unit costs only at period-end. Process Operations
3. Uses indirect costs. Both
4. Transfers costs between Work in
Process Inventory accounts. Process Operations
5. Uses only one Work in Process account. Job Operations
6. Uses materials, labor, and overhead costs. Both
Explanation:
The main difference between the two operations is the manner costs are accumulated. Job operations accumulate costs for different jobs that are not similar. Process operations accumulate costs to show the process a product passes through. The product of a process operation is not unique like the product of a job operation.