Answer:
d. A debit to Allowance for Uncollectible accounts and a credit to accounts receivable
Explanation:
In an entity using the allowance method all write offs of receivables are routed through the allowance account.
The allowance account is credited with the estimated amount of uncollectible accounts and the bad debts expense account is debited.
When an account receivable is written off it is debited to the allowance for uncollectible accounts is debited and receivable accounts is credited.
Answer:
$120
Explanation:
In this question, we simply have to apply the simple interest formula which is shown below:
= Principal amount × rate of interest × time period
= $2,000 × 6% × 1 year
= $120
Simply we multiplied the principal amount with the interest rate and the time period so that the accurate amount can come.
So, $120 interest is paid for the year
What’s the quesitos asking? Like I know it’s a quick sort but like about what?
Use the fixed manufacturing overhead, 4.00 and the variable manufacturing $1.50 to find the answer.
$4.00(10,000units)= $40,000
$40,000+ ($1.50 * 11,000)= $56,500
Answer: The company should not buy the new equipment
Explanation:
For the 1st case:
Revenue = Selling price × Number of units
= 1 × 30000
= $30,000
Total cost = Fixed cost + Variable cost
= 14000 + (0.5 × 30000)
= 14000 + 15000
= $29000
Profit = Revenue - Cost
= $30000 - $29000
= $1000
For the 2nd case:
Revenue = Selling price × Number of units
Revenue = Selling price × Number of units
= 1 × 50000
= $50,000
Total cost = Fixed cost + Variable cost
= 20000 + (0.6 × 50000)
= 20000 + 30000
= $50000
Profit = Revenue - Cost
= $50000 - $50000
= $0
Based on the calculation above, the company should not buy the new equipment as no profit will be made while currently a profit of $1000 is made.
