Answer:
a. Journal entry
b. $18,150
c. $586,850
Explanation:
a. The adjusting journal entry is as follows
Bad debt expense A/c Dr
To Allowance for doubtful debts
(Being bad debt expense is recorded)\
The computation of the bad debt expense is shown below:
= Account receivable × estimated percentage given + debit balance of allowance for uncollectible accounts
= $605,000 × 3% + $4,700
= $18,150 + $4,700
= $22,850
b. The adjusted balance in Allowance for Doubtful Accounts is $18,150
c. The cash realizable value is
= $605,0000 - $18,150
= $586,850
Answer:
A decrease in the elasticity of demand for the cartel's product.
Explanation:
The cartel is under the control of companies operating in the same area. This is undesirable. It is concluded between businesses and these contracts prevent competition. Such arrangements are also prevented by governments, which aims to promote competition among governments across the country. This type of arrangement creates unity and demonstrates business behavior in activities that prevent other competitors from entering the sector.
Adverse effects on consumers include:
1) Higher prices - cartel members can raise prices, which reduces the demand elasticity of any member.
2) Lack of Transparency - Members may agree to hide prices or hide information such as hidden charges in credit card transactions.
3) Limited production - Members may agree to limit market production, such as OPEC and oil quotas.
4) Build Market - Cartel members can collectively divide a market into regions or regions and not compete in each other's territory.
Answer:
Cullumber Company
Dr Inventory $790
Cr Accounts Pay $790
Bramble Company
Dr Account receivable $790
Cr Sales Revenue $790
Dr Cost of goods sold $470
Cr Inventory $470
Explanation:
Preparation of the journal entries on the books of both companies
CULLUMBER COMPANY
Dr Inventory $790
Cr Accounts Pay $790
(To record credit purchase of inventory)
BRAMBLE COMPANY
Dr Account receivable $790
Cr Sales Revenue $790
(To record credit sale)
Dr Cost of goods sold $470
Cr Inventory $470
(To record cost of merchandise sold)
Answer: Option C
Explanation: In simple words, expenses refers to outflow of money from the pockets or account of any individual or an entity with the objective of acquiring or producing something.
Manufacturing cost refers to the amount of resources that were out flowed the organisation while producing a good or service. Since the resources are getting out flowed, these costs are always recorded as expense over the operational life of the entity.
Labor cost, electricity bill of machines and purchase cost of raw materials etc are some of many examples of manufacturing cost.