Answer:
Check the following explanation
Explanation:
a) Goods available for sale = Beginning Inventory + Net Purchases
13500 + 17500 = 31000
Cost of goods sold = Goods available for sale - Ending Inventory
31000 - 8100 = 22900
Gross Profit = Net Sales - Cost of goods sold
26500 - 22900 = 3600
b) Net Income for Krug Service Company = Revenues - Expenses
= 31000 - 10500
= 20500
Net Income for Kleiner Merchandising Company = Gross Profit (Computed Above) - Expenses
= 3600 - 2300
= 1300
<span>It takes time for a team to develop and be productive, Erik should give some more time for the team to stabilize, sort out their differences and work towards the common objective as a team. This is normal for a team to have conflicts in the beginning, it leads to brain storming and help the team to get to know each other better and normalize.</span>
Answer:
$312,800
Explanation:
Cost of Goods Sold = Opening Inventory + Purchases - Closing Inventory
therefore,
Cost of Goods Sold = $66,000 + ($305,000 - $9,100 - $3,100 + $41,000) - $87,000
= $312,800
thus,
The Cost of Goods Sold is $312,800
Answer:
The existing balance in Allowance for Doubtful Accounts is considered in computing bad debt expense in the percentage of receivables basis.
Explanation:
Percentage of receivables basis is preferred over direct write-off of bad debt expenses and is used in the calculation of bad debts, this is done by multiplying the accounts receivable by percentage of expected noncollectable debts and then subtracting accounts for bad debts are then subtracted from accounts receivable on the balance sheet and the result reported as net accounts receivable. It is used in calculating the bad debt expense in each account reporting period.
