Answer:
- July 1st - December 31st (6 months)
- Here, $8,000 is paid for 2 years (24 months)
So, expenses for 6 month = $8,000 * 6/24 = $2,000
Date Journal Entry Debit Credit
Expense $2,000
Prepaid expense $2,000
(To record the expense)
Answer:
debit: provision for doubtful accounts
credit: accounts receivable
Explanation:
Based on the information given in a situation where the restaurant make uses of the DIRECT WRITE-OFF METHOD of accounting for bad debt expense, the appropiate journal entry to recognize this bad debt would be a debit to PROVISION FOR DOUBTFUL ACCOUNTS and a credit to ACCOUNTS RECEIVABLE.
Debit Provision for doubtful accounts $750
Credit Accounts receivable $750
Answer:
Corbel Corporation's common fixed cost is $41,650
Explanation:
Division A contribution margin $47,700
Division B contribution Margin <u>$80,850</u> $128,550
($231,000 * 35%)
Less: Traceable fixed cost $59,700
Operating Income <u>$27,200</u> <u>($86,900)</u>
Common fixed cost <u>$41,650</u>
Answer:
Intensive.
Explanation:
In this scenario, Mike is driving over to his girlfriend's apartment and decides to buy some gum. He could stop in a gas station, go to any grocery store, go to any discount store, or even buy some out of a vending machine. The reason Mike has so many options to buy gum is because chewing gum companies strive for intensive channel coverage.
An intensive channel coverage is a sales method which is typically focused on providing varieties of sales outlets or channels for customers to buy their desired products.
Companies operating under the intensive channel coverage, are usually aimed at saturating the market with their products, by using all available sales outlets.
<em>Hence, Mike had so many outlets where he could buy gum from because chewing gum companies strive for intensive channel coverage in order to reach out to potential customers. Other examples of companies that use the intensive coverage channel are cigarette, beer etc. </em>
