Is to collect information
Answer:
e. $111,000
Explanation:
Absorption costing income for year 3 = Income under variable costing - {Beginning inventory (units) * Fixed manufacturing overhead per unit} + {Ending inventory (units) * Fixed manufacturing overhead per unit}
Absorption costing income for year 3 = 115,000 - (500*8) + (0*8)
= 115,000 - 4,000 + 0
= $111,000
The complete information is that on January 1 2016 the Allegheny Corporation purchased machinery for $115,000. The estimated service life of the machinery is 10 years and the estimated residual value is $5,000. With that in mind, the machine is expected to produce 220,000 units during its life. In that case we can calculate a depreciation for 2016 and 2017 and doing it with one of the methods which is called Straight-Line Depreciation which states that:
<span>Choose Numerator: / Choose Denominator: = Annual Depreciation Expense </span>
<span>Cost minus Salvage / Estimated Useful Life (years) = Depreciation Expense </span>
Answer:
$32,250
Explanation:
Aging Bucket Amount Outstanding
Current 300,000
1-90 days 180,000
91-180 days 100,000
181-365 days 50,000
366+ days <u>15,000</u>
Total <u>$645,000</u>
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Total accounts receivable at the end of March = $645,000
Percentage uncollectible = 5%
Required reserve at the end of March = Total accounts receivable at the end of March * Percentage uncollectible
Required reserve at the end of March = $645,000*5%
Required reserve at the end of March = $32,250
Answer:
Explanation:
The journal entries are shown below:
1. Purchase A/c Dr $5,400
To Accounts Payable $5,400
(Being merchandise is purchased on credit)
2. Freight-In A/c Dr $500
To Cash A/c $500
(Being freight charges are paid in cash)
3. Accounts Payable A/c Dr $800
To Purchase Returns A/c $800
(Being return merchandise is recorded)
4. Cash A/c Dr $5600
To Sales revenue A/c $5600
(Being merchandise is sold for cash)
5. No journal entry required
