Answer:
Both sales and account receivable
Explanation:
In the case when the company sells the goods or services on an account and the revenue is to be recorded prematurely so here the both accounts i.e. sales and the account receivable are overstated as it impacts these two accounts
Therefore the same is to be considered
hence, Both sales and account receivable are overstated
Answer:
Net operating income would be decreased by $137,000
Explanation:
The computation is shown below:
Sales $490,000
Less: Variable expenses ($221,000)
Contribution margin $269,000
Less
Fixed manufacturing expenses ($90,000)
Fixed selling and administrative expenses ($42,000)
Net income $137,000
If the product H58S were dropped than the net operating income would be decreased by $137,000
Answer:
depreciation expense 6,375 debit
accumulate depreciation printer 6,375 credit
Explanation:
To calculate the depreciation we will follow this steps:
1.- Calculate the amount subject to depreciation
purchase 59,000
salvage (8,000)
depreciable amount 51,000
2.- We calculate the striaght-line depreciation
depreciable amount / useful life
51,000/4 = 12,750
Now this amount is for a complete year. The printer enter the accounting on June 30th so at December 31th we have half-year
12,750 --> complete year
12,750/2 --> half year = 6,375
3.- we do the entry:
we recognize the depreication expense
and increase the accumulated depreciation on the printer