Answer:
B.
Explanation:
An uncollectible account or bad debt is an account receivable that the business cannot collect. Businesses account for bad debts by using
:
-the allowance method.
-the direct write-off method
.
The direct write-off method is primarily used by businesses with few credit customers. When it is determined that a customer is not going to pay, the uncollectible account is removed from the records.
To remove from the records, there is a credit to Accounts Receivable (asset account, increase by the debit) and a debit to Bad Debts Expense (expense account, increase by the debit).
Answer:
Predetermined OH rate is $37.09
Explanation:
Firstly, we need to get the value for predetermined Fixed OH rate.
Predetermined Fixed OH rate = Estimated Fixed overhead / Estimated machine hours
= $2,347,090 / 79,000
= $29.71 per machine hour
Predetermined OH rate = Predetermined Fixed OH rate + Predetermined Variable OH rate
= $29.71 + $7.38
= $37.09
Therefore, the predetermined OH rate is $37.09
Answer:
$2,500,000
Explanation:
The computation of the sales amount is shown below:
= Average account receivable balance × total number of days in a year ÷ days sales outstanding
= $500,000 × 365 days ÷ 73 days
= $2,500,000
We simply apply the unitary method for this question that is shown above in the calculation part i.e multiplying the total number of days in a year by the average account receivable balance and then divided it by the days sales outstanding
Answer:
Option C It attempts to determine the retail price by using production costs as a base.
Explanation:
This approach helps in determining the retail price of the competitors that he is charging in the market. This gives a better insight to what the production costs are of the competitors.This information is very important for pricing decisions and for cost control strategy. This gives a better insight where we are and where we must be. So the option C is correct here.