Answer: Debit Bad debt expense $11,264, Credit Allowance for bad debt $11,264; Debit Allowance for bad debt $9,650, Credit Accounts receivable $9,650.
Explanation: Percentage of credit sales method means bad debt expense expressed as a percentage of sales.
The estimated bad debts rate is 2.2%, which translates to 2.2% of $512,000 (credit sales) = $11,264. The firm has to record this, being the estimated bad debts rate, as Debit to bad debt expense and Credit to allowance for bad debt. However, accounts receivable that was deemed uncollectible is $9,650. This amount would be taken out from the buffer in allowance account by debiting allowance for bad debt and crediting accounts receivable.
Answer:
Direct Material Cost
= Cost of hardware + cost of wood
= 42,300 + 121,200
= $163,500
Direct labor
= Wages of Assembly workers + Finishing workers
= 87,400 + 74,100
= $161,500
Manufacturing Overhead
= Depreciation + Factory prop. taxes + Factory rent + Glue + Production Supervisor salary + Utilities for factory + Wages for maintenance workers
= 32,000 + 15,500 + 50,000 + 3,030 + 41,200 + 27,800 + 33,200
= $202,730
Prime Cost
= Direct labor + Direct material
= 161,500 + 163,500
= $325,000
Conversion Cost
= Direct labor + Manufacturing Overhead
= 161,500 + 202,730
= $364,230
Total Period Cost
= Advertising + Sales Manager's salary
= 25,600 + 41,500
= $67,100
Answer:
a) true
Explanation:
Support Function include Information Technology, Human Resources, Finance and Marketing. These are there to ensure that conversion process is efficient by providing support services such as sourcing of talent, fund management, communication.
Answer:
Discovery of new oil reservoirs and technological developments on oil extraction.
Explanation:
The world has not run out of oil by two reasons. First, the discovery of new oil reservoirs and, second, the development of new technologies that increased extraction efficiency in a feasible way.
