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Galina-37 [17]
3 years ago
12

Allowance for Doubtful Accounts has a debit balance of $500 at the end of the year, before adjustment, and uncollectible account

s expense is estimated at 3% of net sales. If net sales are $600,000, the amount of the adjusting entry to record the provision for doubtful accounts is: a. $12,000 b. $6,800 c. $18,000 d. $1,800
Business
1 answer:
tigry1 [53]3 years ago
8 0

Answer: c. $18,000

Explanation:

Provision for doubtful accounts estimate;

= 600,000 * 3%

= $18,000

This is the Percentage of sales method and it ignores the existing balance in the Provision for doubtful accounts using only the estimate provided.

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Foster Manufacturing uses a job order cost accounting system. On April 1, the company has Work in Process Inventory of $7,600 an
Andrej [43]

Answer:

<u>Foster Manufacturing </u>

<u>Journal Entries</u>

<u>Sr. No                       Particulars                       Debit           Credit</u>

1                    Work in Process Job No. 221        1200

                    Work in Process Job No. 222      1700

                   Work in Process Job No. 223       2400

                    Work in Process Job No. 224      2600

         Factory Overhead  Indirect Materials      600

                              Materials Inventory                                  8500

Materials Requisitioned to specific jobs work in process inventory.

2. Direct Labor    Work in Process Job No. 221        1600

     Direct Labor  Work in Process Job No. 222      2200

  Direct Labor    Work in Process Job No. 223       2900

    Direct Labor Work in Process Job No. 224      2800

                                                   Indirect Labor      400

                                      Payroll                                               9500

                                         Factory OverheadControl               400

Direct Labor used for specific jobs.

3.          Work in Process Job No. 221              1120

                    Work in Process Job No. 222      1540

                   Work in Process Job No. 223       2030

                    Work in Process Job No. 224      1960  

                         Manufacturing Overheads                            6930

Manufacturing Overheads applied to specific jobs at the rate of 70%.

4.     Finished Goods Inventory          $ 7940

      Opening   Work in Process Job No. 221                       3600

         Work in Process Job No. 221 Materials                     1200

         Work in Process Job No. 221 Direct Labor               1600

         Work in Process Job No. 221 MOH                          1540

Job 221 completed and transferred to finished goods.

                   

3 0
3 years ago
The manager of the bank where you work tells you that your bank has $5 million in excess reserves. She also tells you that the b
netineya [11]

Answer:

Reserve requirement = 40 / 300

Explanation:

Given:

Excess reserve = $5 million

Total deposit = $300 million

Total loan = $255 million

Computation of reserve requirement:

Reserve requirement = (Total deposit - Excess reserve - Total loan) / Total deposit

Reserve requirement = ($300 - $255 - $5) / $300

Reserve requirement = ($300 - $260) / $300

Reserve requirement = ($40) / $300

Reserve requirement = 40 / 300

7 0
2 years ago
Read 2 more answers
Question 3<br>When a court hears a breach of contract dispute, its job is to:​
Gemiola [76]
Their job is to find a verdict
3 0
3 years ago
Suppose manufacturers introduce a new model car to replace a car currently included in the CPI basket. The price of the new car
Harlamova29_29 [7]

Answer:

The correct answer is option D.

Explanation:

The consumer price index is a tool to measure inflation in the economy. It measures the change in price level through a basket of goods generally purchased by the households. It does not include change in quality.  

It is measured as

CPI =  

\frac{Cost\ of\ Market\ Basket\ in\ Base\ Year}{ Cost\ of\ Market\ Basket\ in\ Given\ Year} \ \times\ 100

In the given example, the price of the car is increasing but the quality is improving as well. Since the CPI does not include quality, the inflation rate will be overstated.

6 0
3 years ago
When Ramona, the keynote speaker at a major business leaders' conference, arrived in the middle of the night at the Ritz-Carlton
Oliga [24]

Answer:

D. customer excellence.

Explanation:

Customer excellence is when an organisation always provides services the makes customers happy, and customers reciprocate by being loyal to those who give them excellent service.

In this instance, the night clerk anticipated that the Ramona was going to use hero suit the next day and arranged for someone to dryclean it.

Ramona in turn is now a loyal customer in Ritz-Carlton.

4 0
3 years ago
Read 2 more answers
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