Answer:
The amount of overhead debited to Work in Process Inventory should be: a. $182,00
Explanation:
The Overheads are Applied in the Manufacturing Costs as:
Budgeted Rate × Actual Activity for the Month
At the End of the Period we would need to determined whether this amount of overhead is Over or Under Applied by comparing it to the actual overheads incurred of $180,000 (given)
In our Case, the predetermined overhead rate is 70% of direct labor cost
<em>Thus we need to find the Direct Labor Cost first</em>:
Total Labor Costs $360,000
<em>Less </em>Indirect Labor Costs<em> </em>$100,000
Direct Labor Cost $260,000
<em>Therefore Overheads applied would be determined as:</em>
= $260,000 × 70%
= $182,000
Assets to decreases and stockholders' equity to decrease due to the adjusting entry used to record the allowance for doubtful accounts.
Allowance for doubtful accounts also known as contra account nets against the total receivables shown on the balance sheet to only show the amounts anticipated to be paid. The percentage of accounts receivable that are anticipated to be uncollectible is estimated by the allowance for doubtful accounts.
The danger of not being paid is always inherent in a credit-based transaction, regardless of the corporate rules and procedures for credit collections. As a result, a business must recognize this risk by creating an allowance for doubtful accounts and offsetting bad debt expenditure.
Learn more about Doubtful accounts here
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Answer:
A.$8,600
Explanation:
The journal entry to record the bad debt expense is shown below:
Bad debt expense A/c Dr $8,600
To Allowance for doubtful debts $8,600
(Being bad debt expense is recorded)
Since the bad debt expense is an expense so the same is recorded in the debit side of the balance sheet while the estimated uncollectible portion reduces the account receivable balance so we credited it
Answer:
Dollar Tree = $5,643
Target = $11,297
Explanation:
For dollar tree, using the given equation:
13,501 = 7,858 + stockholder's equity
Stockholder's equity = 13,501 - 7,858
= $5,643
For target, using the given equation:
41,290 = 29,993 + stockholder's equity
Stockholder's equity = 41,290 - 29,993
= $11,297
