Answer
The answer and procedures of the exercise are attached in a microsoft excel document.
Explanation
Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in a single sheet with the formulas indications.
They know that if you do not go through with the contract it may lead you to whats known as fraud. It is illegal to not go through with a contract so you may be arrested
Answer:
F. $500
Explanation:
At the end of the period, accounts receivable balance of $40,000
Bad debts are estimated: 2% x $40,000 = $800
Before adjusting, allowance for doubtful accounts balance of $300 (credit) and the company uses the allowance method to account for bad debts. Therefore,
Bad debts expense = $800 - $300 = $500
The entry will be made:
Debit Bad debts expense $500
Credit Allowance for doubtful accounts $500
When sales exceed production, the net operating income reported under variable costing generally will be <u>greater than the net operating income reported under absorption costing</u>.
Under variable costing, constant manufacturing overhead fee is handled as product cost. If the range of devices produced exceeds the range of gadgets sold, then net operating income under absorption costing will: be extra than net operating earnings underneath variable costing.
Variable costing is a concept used in managerial and cost accounting wherein the fixed production overhead is excluded from the product price of manufacturing. The technique contrasts with absorption costing, in which the fixed manufacturing overhead is allotted to products produced.
Absorption costing, once in a while known as “full costing,” is a managerial accounting technique for taking pictures of all prices associated with manufacturing a selected product. The direct and oblique costs, together with direct substances, direct exertions, leases, and insurance, are accounted for with the aid of the use of this method.
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