Answer: c. Cost of Goods Sold $9,500 $9,500 Inventory.
Explanation:
The journal entries that is required on December 31 to adjust the ending balance of inventory if the direct method is used to record the lower of cost or market write down will be gotten as the difference between the historical cost of the ending inventory and the current replacement cos of inventory. This will be:
= $316000 - $306500
= $9500
Therefore, the journal entry will be:
Debit: Cost of Goods Sold $9,500
Credit: Inventory $9,500.
DEBIT TO ALLOWANCE for Doubtful Accounts and a credit to Accounts Receivable.
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When a specific customer's account is identified as uncollectible, it is written off against the balance in the allowance for bad debts account.
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Answer:
The correct answer is letter "B": It formalizes the logistics agreed upon by the roommates in the case of a dispute.
Explanation:
Roommate relationships might not always be harmonious. In most cases, people have roommates with the only purpose of sharing rent expenses. Aside from that, they are unlikely to have another bond. Thus, some conflicts could arise as a result of dealing with strangers.
To avoid major inconveniences, a roommate agreement should be signed among the individuals sharing the apartment so in the document, they formally establish the responsibilities and limits they have by sharing the same department and, in front of problems, the document will make it easier to determine who could be at fault.
