Answer:
option d) debit to Bad Debt Expense for $7,200
Explanation:
Data provided :
Total estimated uncollectible receivables of the company = $ 7,900
credit balance for the allowance for doubtful accounts = $ 700
Therefore,
the net bad debt expenses of the company = $ 7,900 - $ 700 = $ 7,200
Hence,
the<u> correct answer is </u><u>option d) debit to Bad Debt Expense for $7,200</u>
Answer:
Option A and B
Explanation:
The company desires to estimate the cost of the job so that it can minimize it by emphasizing control. This is one of the major reasons why the companies estimate cost of the job, product or service. So option A is correct.
Option B is also correct because the companies have to form contracts with its customers and for that reason predetermined overhead rates helps a lot estimating the price of the product which the company and customer can agree upon.
Option C is incorrect because predetermined costs are estimates and estimates are not always accurate.
Option D is false because daily recording of overheads requires predetermined overhead rates which is adjusted at the month end or quarter end or year end. So its not useless at all.
Answer:
Equivalent units for the month = 18,720
Explanation:
Provided that
Opening units of work in process = 3,080 units
Which are 100% complete to materials as the materials are added fully initially.
Completed and transferred during the period = 19,400
Since not provided assumed these are added during the period, and includes opening work in process.
Closing Work in process = 2,400 units.
For the period equivalent units = During the month + Closing - Opening
= 19,400 + 2,400 - 3,080 = 18,720 units
300
Divide 3600 by 100= 36
divide 36 by 12= 3
multiply 3 by 100=300
