Answer:
a. 12 times
b. 30.42 days
Explanation:
Data provided in the question
Sales = $4,560,000
Average account receivable = $380,000
So, The computation is shown below:
a. Account receivable turnover ratio is
= Sales ÷ average account receivable (net)
= $4,560,000 ÷ $380,000
= 12 times
b. Now the number of days sales in receivable is
= Total number of days in a year ÷ account receivable turnover ratio
= 365 days ÷ 12 times
= 30.42 days
Answer:
B
Explanation:
A. Positive confirmation should always be used for large balances
C. Trade receivables is the overlying term for both account receivables and note receivables. There is no distinguish here between large and small balances.
D. The positive form should be used for receivables that are unsatisfactory.
Answer:
B. Paid-In Capital in Excess of Stated long dash Common for $ 130,000
Explanation:
Whenever shares are issued at a price higher than the par value, then the additional value that is higher than par value is is added to paid in capital in excess of stated common capital.
Here, in the given case stated capital = 10,000 
$3 = $30,000
Paid in capital in excess of stated capital = 10,000 ($16 - $3) = $130,000
Thus, correct entry will include credit to both of the above.
Therefore, correct option is
B. Paid-In Capital in Excess of Stated long dash Common for $ 130,000
Answer:
b. Production exceeds sales for that period.
Explanation:
This is said to be calculated or gotten from Earnings Before Interest And Taxes(EBIT). This is generally referred to as EBIT. They are returns from investments made in real estate or other forms of investments in a company that is gathered after all taxes and also other interests.
In arithmetic calculations it is done by calculating gross revenue from sales and services and also labour that was been involved. Remove the cost of goods sold, then add expenses from utilities, rent etc.
Answer:
budgeted manufacturing overhead=$2871
Explanation:
Direct labour hours= budgeted production × standard hours per unit
= 870× 1/4 hour=217.5 hours
Direct labour cost = 217.5
× $12 =$2610
Manufacturing overhead = Overhead absorption rate × direct labour cost
= 110%×2610
=2,871
Budgeted manufacturing overhead=$2871
