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4 years ago

Which statement about subsidiary ledger is most accurate

2 answers:

4 0

The accounts receivable subsidiary ledger is a book of accounts that provides supporting detail for Accounts Receivable.

DochEvi [55]4 years ago

4 0

Answer: A subsidiary ledger account is a group of accounts in the sense that when these group of accounts are closely observed, the total combined balance equals that of a specific general ledger account.

Explanation:

The subsidiary ledger contains details of a specific general ledger. It acts as an intermediary set of account that connect to the general ledger. Examples of subsidiary (sub) ledger account are account payable ledger, account receivable ledger, fixed assets ledger, inventory ledgers and purchases ledger. Auditors can trace transactions from a subsidiary ledger account to a specific general ledger account and also to the financial statement to be assured that proper transactions of accounts are taken and recorded.

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he management accountant for Giada's Book Store has prepared the following income statement for the most current year: Cookboo

dlinn [17]

Answer:

Giada's Book Store

The company would have reported a total profit of $19,000, which is $10,000 less.

Explanation:

a) Data and Calculations:

Income statement for the most current year:

Cookbook Travel Book Classics Total

Sales $68,000 $126,000 $53,000 $247,000

Cost of goods sold 40,000 66,000 21,000 127,000

Contribution margin 28,000 60,000 32,000 120,000

Order and delivery processing 21,000 24,000 11,000 56,000

Rent (per sq. foot used) 2,000 5,000 4,000 11,000

Allocated corporate costs 8,000 8,000 8,000 24,000 Corporate profit $ (3,000) $23,000 $9,000 $29,000

Corporate profit = $29,000

less allocated cookbook costs 10,000

Adjusted corporate profit = $19,000

b) Discontinuing the Cookbook product line would have eliminated the contribution the product line makes to defraying Rent and Allocated Corporate costs totalling $10,000 unless the Rental space was a variable cost.

4 0

3 years ago

Jumpin Corporation uses the percent-of-sales method to estimate uncollectibles. Net credit sales for the current year amount to

Zinaida [17]

Answer:

$101,500

Explanation:

Net Sales $2,030,000

Allowance for uncollectible Accounts ($2,030,000*5%)=$101,500

The amount of uncollectible accounts to be reported in income statement shall be $101,500

7 0

3 years ago

The contribution margin is determined by subtracting _______.

sineoko [7]

Answer:

c. variable product and variable period cost from sales.

Explanation:

Contribution Margin is obtained by subtracting the total variable costs from the sales. This is also known as direct costing. Deducting fixed expenses from the contribution margin yields profit . Contribution margin is used in various ratios such as the contribution margin ratio and break even sales is also determined by using it sometimes. Contribution margin is a tool for managers as sales figures guide cost figures. The variable cost of goods sold varies directly with sales volume and the influence of production on profit is eliminated.by deducting only the variable product costs and not the variable period costs we get gross contribution margin. After deducting the variable period costs we get the contribution margin.

5 0

3 years ago

Amanda is trying to decide whether to get a job after graduation or to spend another year in school to get her master's degree.

Alenkinab [10]

Answer:

36,000

Explanation:

5 0

4 years ago

Which of the following is the correct formula for profit?

Lisa [10]

Answer:

(Sales volume * Price) – (Variable costs + Fixed costs)

Explanation:

Profit is equal to Total sales less Total costs .

Here, Total costs is the addition of Variable and Fixed costs

(Sales Volume x Price) - (Variable Costs + Fixed Costs).

3 0

3 years ago