Answer:
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Explanation:
Answer:
D. Debit fixed manufacturing overhead spending variance for $40,000
Explanation:
Since fixed manufacturing overhead shows the difference between the actual fixed overhead costs and budgeted fixed overhead cost during a period, Bismith would debit fixed manufacturing overhead spending variance of $40,000 inorder to write off the recording of the variances at the end of the accounting period because the value for fixed manufacturing overhead spending variance has already being gotten hence would be applied at the end of the period.
Answer:
$1,520
Explanation:
Given that,
Accounts Receivable balance = $63,400
Allowance for Doubtful Accounts balance = $1,300
Services provided on account during year 2 = $152,000
Cash collected from accounts receivables = $161,300
Estimated Uncollectible accounts = 1% of sales on account
Therefore, the amount of uncollectible accounts expense during the year 2 is the 1 percent of the amount of services provided on account to a customer.
Hence, the amount of uncollectible accounts expense recognized on the Year 2 income statement is calculated as follows:
= Services provided on account × Estimated Uncollectible accounts
= $152,000 × 1%
= $1,520
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