Answer:
$6250
$5000
$5250
Explanation:
Straight line depreciation expense = (Cost of asset - Salvage value) / useful life
($212,000 - $12,000) / 8 = $25,000
The machine was used for only 3 months in the fiscal year. Thus, the depreciation expense = $25,000 x (3/12) = $6250
Activity method based on output = (output produced that year / total output of the machine) x (Cost of asset - Salvage value)
(1000 / 40,000) x ($212,000 - $12,000) = $5000
Activity method based on hours worked = (hours worked that year / total hours of the machine) x (Cost of asset - Salvage value)
($212,000 - $12,000) x (525 / 20,0000) = $5250
Answer: The correct answer is "A. research and development".
Research and development are <u>NOT</u> considered as one of the three primary functions that all organizations perform.
Explanation: The basic operating cycle of a company is buy-sell-collect-pay. In some cases, companies can produce the good they sell or directly re-sell it. This implies production, operation and marketing activities to increase sales and for an adequate control of these you need accounting.
Only in particular cases do companies engage in research and development, but it is not something basic.
Answer:
a. $25,650
b. Journal entries
Explanation:
The computation is shown below:
a. The balance of the Allowance for Doubtful Accounts is
= Total account receivable × estimated percentage
= $570,000 × 4.5%
= $25,650
b. The adjusting entry is as follows
Bad Debt Expense $13,650 ($25,650 - $12,000)
To Allowance for Doubtful Accounts $13,650
(Being the bad debt expense is recorded)
c. The adjusting entry is as follows
Bad Debt Expense $26,650 ($25,650 + $1,000)
To Allowance for Doubtful Accounts $26,650
(Being the bad debt expense is recorded)
Answer:
$5,000= ending inventory
Explanation:
Giving the following information:
Gross margin is normally 40% of sales.
Sales= $25,000
beginning inventory= $2,500
purchases= $17,500
First, we need to determine the cost of goods sold:
COGS= 25,000*0.6= 15,000
Now, using the following formula, we can calculate the ending inventory:
COGS= beginning inventory + cost of goods purchased - ending inventory
15,000= 2,500 + 17,500 - ending inventory
5,000= ending inventory
