Answer: debit to Product Warranty Expense for $750
Explanation: 5% of $15000 =
5 ÷ 100 × $15000 is $750.
This is an expense and so will be a debit.
The two main accounting methods are cash accounting and accrual accounting. Cash accounting records revenues and expenses when they are received and paid. Accrual accounting records revenues and expenses when they occur. Generally accepted accounting principles (GAAP) requires accrual accounting.
Answer:
The contribution margin is $29,650
The contribution margin ratio is 42.35%
Explanation:
Contribution Margin : The contribution margin shows a difference between sales revenue and variable cost.
For computing the contribution margin, the following formula is used which is shown below:
= Service revenue - Cleaning supplies - wages expenses
= $70,000 - $22,000 - $18,350
=$29,650
Thus, the contribution margin is $29,650
Now, the contribution margin ratio is a ratio between contribution margin and sales.
In mathematically,
Contribution margin ratio = Contribution ÷ Service revenue
= $29,650 ÷ $70,000
= 42.35%
Hence, the contribution margin ratio is 42.35%
Answer:
Account at December 31th, Year 2: 210,000
Explanation:
We work this using the following reasoning
beginning accounts receivable
<u>+ sales on accounts </u>
Total amount to collect
<u>- collection through the period</u>
ending accounts receivable
year 2
beginning accounts receivable 100,000
+ February 1st sale on account 40,000
+ November 1st sale on account <u>70,000</u>
total amount to collect 210,000
As we are not given with any data for collection we assume is zero.
Therefore ending AR balance:
210,000 - 0 = 210,000
Answer:
1. D
2. A
3. C
4. B
Explanation:
Price can be defined as the amount of money that is required to be paid by a buyer (customer) to a seller (producer) in order to acquire goods and services.
In sales and marketing, pricing of products is considered to be an essential element of a business firm's marketing mix because place, promotion and product largely depends on it.
In Accounting, costing is the measurement of the cost of production of goods and services by assessing the fixed costs and variable costs associated with each step of production.
The various types of cost variance components and their definition includes the following;
1. Standard price: the expected price
2. Actual quantity: the input used to manufacture the quantity of output
3. Actual price: the amount paid to acquire input
4. Standard quantity: the expected input for the quantity of output
