Your repeat customers have made it clear that quality is more important than price. This reflects your target market's

Valli Company uses the percentage of sales method for recording bad debts expense. For the year, cash sales are $700000 and cred

marshall27 [118]

Answer:

Adjusting entry Valli Company will make to record the bad debts expense:

Debit Bad Debts Expense $25,000

Credit Allowance for Doubtful Account $25,000

Explanation:

Valli Company uses the percentage of sales method for recording bad debts expense. Bad debts expense is calculated by using the following formula:

Bad Debts Expense = % Estimated Bad debts × Credit Sales

In Valli, Credit sales are $2,500,000 and % estimated is 1%.

Bad Debts Expense = 1% x $2,500,000 = $25,000

The adjusting entry to record the bad debts expense will be:

Debit Bad Debts Expense $25,000

Credit Allowance for Doubtful Account $25,000

6 0

3 years ago

Eastern Products, Inc. has an attractive package of fringe benefits that costs the company $4 for each hour of employee time (ei

hammer [34]

Answer:

$192 will be allocated to the direct labor cost while $8 will be allocated to manufacturing overhead.

Explanation:

Costs relating to idle time are part of the fringe benefits that are related to direct labor and they are parts of the benefits given to workers.

Idle time is the number of time in which workers are idle during the normal working hours or day. Some of the causes of idle time include defective materials, power outage, faulty machine, shortage of raw materials, and among others.

In cost accounting, idle time costs are not included in the direct labor costs but are considered as indirect labor costs. Idle time costs are therefore included in manufacturing overhead cost.

From the question,

Direct labor cost = (Number of hours worked by Robert – Idle hours) × hourly rate

Direct labor cost = (50 - 2) × $4

= 48 × $4

= $192

Idle time cost = Idle time × hourly rate

= 2 × $4

= $8

Total cost = Direct labor cost + Idle time cost

= $192 + $8

= $200

Since idle time cost is considered as indirect labor cost and to be included in manufacturing overhead cost, $192 will be allocated to the direct labor cost while $8 will be allocated to manufacturing overhead.

All the best.

4 0

4 years ago

How does competition help consumers?

olga2289 [7]

I did my research, and competition helps consumers by keeping the prices low and the services/goods fairly high. Competition helps our economy to grow, and the Commission helps to make sure markets are not only open, but free. I’m not sure if this is the answer you’re looking for or the right answer, but this is what I found from research.

4 0

4 years ago

You are headed off to college. Some close family members decide it would be a good idea to buy a house in the college town and t

jek_recluse [69]

The ideal type of business would be the sole proprietorship, as it is a structure that is easy to start and manage.

<h3 /><h3>What is the sole proprietorship?</h3>

It is a simpler business structure, which is managed by an individual, who has the responsibilities for the business, that is, in this configuration there is no legal distinction between the company and the owner.

Therefore, the sole proprietorship is less bureaucratic, being able to close the business at any time, or change type as the business grows and requires greater responsibility.

Find out more about sole proprietorship here:

brainly.com/question/4442710

7 0

3 years ago

Tracy Company, a manufacturer of air conditioners, sold 100 units to Thomas Company on November 17, 2016. The units have a list

Furkat [3]

Answer:

a. Prepare the journal entries to record the sale on November 17 (ignore cost of goods) and collection on November 26, 2021, assuming that the gross method of accounting for cash discounts is used.

November 17, 100 units sold to Thomas Company, terms 2/10, n/30

Dr Accounts receivable 42,000

Cr Sales revenue 42,000

November 26, invoice collected from Thomas Company

Dr Cash 41,160

Dr Sales discounts 840

Cr Accounts receivable 42,000

b. Prepare the journal entries to record the sale on November 17 (ignore cost of goods) and collection on December 15, 2021, assuming that the gross method of accounting for cash discounts is used.

November 17, 100 units sold to Thomas Company, terms 2/10, n/30

Dr Accounts receivable 42,000

Cr Sales revenue 42,000

December 15, invoice collected from Thomas Company

Dr Cash 42,000

Cr Accounts receivable 42,000

c. Prepare the journal entries to record the sale on November 17 (ignore cost of goods) and collection on November 26, 2016, assuming that the net method of accounting for cash discounts is used.

November 17, 100 units sold to Thomas Company, terms 2/10, n/30

Dr Accounts receivable 41,160

Cr Sales revenue 41,160

November 26, invoice collected from Thomas Company

Dr Cash 41,160

Cr Accounts receivable 41,160

6 0

3 years ago