Is simping okay? i need womans advice

1/1/2019 sally miller purchased $500 of merchandise on account; the cost of the item is $310

timofeeve [1]

Solution and Explanation:

date Particulars Debit Credit

1st january, 2019 Account receivable 500

Sales revenue 500

(To record sales on account)

Cost of goods sold 310

Merchandise inventory 310

(To record cost of goods sold)

31st january, 2019 Notes receivable 500

Accounts receivable 500

(To record notes receivable for the 60 days at the rate of 6 percent)

1st April, 2019 Allowances for Doubtfull accounts 500

Notes receivable 500

(In order to write off Sally Millers account, no interest revenue is to be recognised)

2nd May, 2019 Notes receivable 500

Allowances for doubtful debts 500

( in order to record re-instatement)

2nd May, 2019 Cash 507.50

Notes receivable 500

Interest revenue 7.5

( In order to record the payment received)

3 0

3 years ago

The following situations suggest a strength or a weakness in internal control. Identify each as a strength or weakness, and giv

Mkey [24]

Answer: Options A and C are strengths while options B and D are weaknesses. See explanation below.

Explanation:

a. All employees must take at least five consecutive days off each year.

This is a strength in internal control. This would help to maintain stability in operational process and ensure leave days are effectively utilized. It also prevents staff from taking the leave days in piecemeal and sporadic manner thereby disrupting the operational process and causing team instability. It is also used to ensure leave days are promptly utilised and well accounted for.

b. The accounting department orders merchandise and approves invoices for payment.

This is a weakness in internal control. There should be a check and balance in this regard. In some organizations, proper scrutiny of the vendor and invoice is done by the Procurement Unit and the Expense Control Unit respectively. Even within the accounting department, there is approval hierarchy. Also, the unit within accounting department that is making the order should not be the one to approve the transaction.

c. Cash received over the counter is controlled by the sales clerk, who rings up the sale and places the cash in the register. The daily sales are recorded in the accounting records by the accounting department.

This is a strength in internal control as it ensures checks and balances. Fraud and error can be detected through this means. The accounting department should verify the transactions to the relevant supporting document before recording the transaction in the system.

d. The officer who signs checks need not examine the payment packet because he is confident the amounts are correct.

This is a weakness in internal control in the sense that checks signed by the officer is binding in the court of law. The officer cannot claim ignorance if anything goes wrong. There is therefore a need for proper scrutiny and relevant questions asked before checks are signed.

7 0

3 years ago

At the beginning of the year (January 1), Buffalo Drilling has $12,000 of common stock outstanding and retained earnings of $7,1

Mrrafil [7]

Answer:

Statement of stockholders' equity

at the end of the year (December 31)

Common Stock Retained Earning Total

Opening Balance $12,000 $7,100 $19,100

Income for the year $7400 $7400

Dividend Paid ($2,100) ($2,100)

Common stock issuance $6,900 $6900

End of the year Balance $18,900 $12,400 $31300

3 0

3 years ago

trasher [3.6K]

Answer:

Centralized production processing facility considers top management as the apex of decision making.

In decentralized production processing the decision making is delegated to teams and multiple individuals.

Explanation:

Centralized facility:

Pros:

a. In centralized facility top management commitment helps in improved decision making

b. Allocation of budgets to improve production processes.

c. The process becomes a part of strategic planning.

d. Standardization of processes like Mcdonalds kitchen.

e. Lower costs

f. Better forecasting

Cons:

a. Lack of flexibility

b. In case of international chains customers may be dissatisfied with standardized procedures

c. No room for customization

Decentralized Facility:

Pros:

a. Flexibility

b. Customer oriented approach

c. lack of bureaucratic procedure

d. quick decision making

Cons:

a. No standardization

b. Every Team has its own benchmarking process to evaluate performance.

c. Costly

d. Planning, budgeting and forecasting is effected adversely.

3 0

3 years ago

MegaComputers Inc., has assigned a project manager for each of the five new-product teams. The managers, as well as the project

sergij07 [2.7K]

Answer:

(E). Project

Explanation:

A project based organization structure is one that is created when an organization has projects to implement. This structure is used to ensure the projects are run separately and smoothly, and do not interfere with each other.

Each project manager supervises or coordinates his team members with the goal of accomplishing the objectives of the project within a given period of time.

5 0

3 years ago