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3 years ago

The following summarizes the aging of accounts receivable for Johnston Supplies, Inc. as of July 31, 2016:

Business

1 answer:

dybincka [34]3 years ago

6 0

Answer:

a. June 30, 2016 adjusting entry for bad debt expense

Dr Bad debt expense 9,108

Cr Allowance for doubtful accounts 9,108

b. August 15, 2016, uncollectible accounts are written off

Dr Allowance for doubtful accounts 3,251

Cr Accounts receivable 3,251

c. Allowance for doubtful accounts

debit credit

June 30, 2016 $38,565

August 15, 2016 $3,251

August 15, 2016 $35,314

Explanation:

Number of Days Total Accounts Historical % Total

Unpaid Receivable Uncollectible

Not yet due $128,200 3% $3,846

1-30 days past due $90,900 13% $11,817

31-60 days past due $55,300 19% $10,507

Over 60 days past due $33,500 37% $12,395

Total $38,565

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To ensure that decision makers have enough information to make god decisions a. Move information to those making the decisions

castortr0y [4]

Answer:

The correct answer is letter "C": All of the above.

Explanation:

Managers should have relevant information handy so they can make optimal decisions. However, the information does not always is received in the first place by managers but by employees. Thus, organizations must find a way to move that information to the top positions.

That is why relevant information must be moved to high-rank executives otherwise the positions of decision-making must be provided to those with more corporate information available.

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3 years ago

Car owners can incur a number of costs. Suppose that your parents are willing to pay for the fixed costs of your car, but you mu

xz_007 [3.2K]

Answer:

1. Monthly car payment ( fixed cost)

2. gasoline (variable cost)

3. oil changes (Variable cost)

4. insurance (fixed cost)

5. License plate (Fixed cost)

6. car registration (fixed cost)

7. New tires (variable cost)

8. toll road charges (variable cost)

9. car wash cost (variable cost)

Explanation:

First, you have to know that there are two main kinds of costs that a company or and individual can incur, and they are; fixed cost or variable cost.

Fixed cost:

A fixed cost remains the same, no matter the volume of output. In a company production cost, a fixed cost does not change no matter how many goods or services the company produces. Examples are rent, salaries, insurances, utilities etc. Even though a company does not make any production within a certain month, it will still have to pay the rent for its apartment and equipment, and the workers must be paid too. so the cost remains the same whether output increases or decreases. In our example, the fixed cost on the car is one that does not change no matter how much time the car is used within that month or period, and they include; monthly car payment, which must have a certain fixed amount during the first payment, insurance is fixed, license plates which is a one-time payment is fixed, car registration (annual) is also fixed, how the car was used or not used that year does not affect the annual registration.

variable cost:

A variable cost is one that changes as the volume of production or output change. Example if a company usually incurs a cost of $2 on leather for producing a pair of shoes and it usually produces 1000 pairs in a month, it means its monthly cost for leather is $2000 dollars. If it produces 4000 pairs this month, the cost of production increases to $8000 for the month so it varies with production volume. In our example, the variable cost on the car are costs that change periodically with how the car is used; gasoline, oil changes, toll road charges (which depends overall on how many times the car is used on the road) and car wash cost are all variable costs.

4 0

4 years ago

Cobe Company has already manufactured 19,000 units of Product A at a cost of $25 per unit. The 19,000 units can be sold at this

Dmitriy789 [7]

Answer:

Incremental net income from further processing is $566,600

Explanation:

First of all, it would be necessary to compute profit from selling the product at cut off point and profit when it is further processed in order to determine whether or not it is worth processing further:

Sales revenue $400,000

cost of production(19,000*$25) $475,000

Loss from selling ($75,000)

Further processing:

sales revenue

Product B(5200*$108) $561,600

Product C(11,000*$55) $605,000

Total revenue $1,166,600

total cost

cost of production ($475,000)

cost of further processing ($200,000)

total costs ($675,000)

Profit $491600

By further processing the incremental net profit is $566,600 ($491,600-(-$75000)

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3 years ago

In a process costing system, the application of factory overhead usually would be recorded as an increase in: (CPA adapted) A. F

otez555 [7]

Answer: Factory overhead control

Explanation: Factory overhead is the account where the amount of cost incurred while manufacturing a product is recorded and no direct labour or material is recorded. When the manufactured goods are finished and produced they are recorded as expenses when the goods are sold as manufactured finished products.

All the expenses related to the factory are included in this account such as rent, utility, electricity, supplies, tools. Factory overhead is known as manufacturing burden or expenses.

7 0

4 years ago

The balance in the supplies account before adjustment at the end of the year is $873. The proper adjusting entry if the amount o

yan [13]

Answer:

Explanation:

The proper adjusting entry is as follows

Supplies expense A/c Dr $603

To Supplies A/c $603

(Being supplies account is adjusted)

The supplies expense is computed by

= Supplies account balance - supplies on hand at the end of the year

= $873 - $270

= $603

Basically we debited the supplies expense account and credited the supplies account so that the proper posting could be done.

7 0

3 years ago