Answer:
Debit Bad debt expense $15,120
Credit Allowance for doubtful debt $15,120
Being entries to record estimated bad debts
Explanation:
When a company makes sales on account, debit accounts receivable and credit sales. Based on assessment, some or all of the receivables may be uncollectible.
To account for this, debit bad debit expense and credit allowance for doubtful debt. Should the debt become uncollectible (i.e go bad), debit allowance for doubtful debt and credit accounts receivable.
Where a debit that had previously been determined to have gone bad gets settled, debit cash and credit bad debt expense.
Account receivables balance as at year end
= $257,000 - $131,000
= $126,000
Allowance for doubtful debt = 12% * $126,000
= $15,120
Answer:
$210,000
Explanation:
The computation of the external price is shown below
Making cost = buying cost
$120,000 + $25,000 + $45,000 + $30,000) = external price + Unavoidable fixed cost (30,000-20,000)
$220,000 = External price + $10,000
So,
External price = 210,000
Hence, the same is to be considered
Therefore the external price is $210,000
Answer
Hi,
Correct answer option is {c}
Explanation
There are four stages of solving problems at a workplace;
• Defining the problem where the manager identifies the issue at hand to obtain detailed information about it
• Going through the alternatives, where it involves balancing logical thinking and creativity in accessing and comparing alternatives
• Selecting the best strategy that involves carefully consideration of the options and deciding the strategy which is best for the workplace problem
• Implementing the solution which involves applying the a mixture of reductive analysis and system thinking.
All the Best!
Answer: Decision-Making
Explanation:
Decision-making is the process by which we choose the best perceived alternative to follow after evaluating the available alternatives for their costs and benefits.
These costs and benefits are not only monetary in nature. They can include our values as well as our beliefs and the things we prefer. They also include time as well. Every decision is unique with these and that is why every decision must be evaluated in its own right.
Answer:
$9,000
Explanation:
The computation of the amount of the discount on the bonds at issuance is shown below:
= Par value of the bond - issued price of the bond
= $400,000 - $391,000
= $9,000
By deducting the issued price of the bond from the par value of the bond we can get the discount amount on issuance of the bond and the same is applied above
