Answer:
The bad debts expense for 2015 would be $ 28,000
Explanation:
The balance of the allowance for doubtful account should be equal to the amount estimated to be uncollectible based on the ageing analysis
Estimated uncollectible account $ 31,000
Allowance for doubtful accounts prior to adjustment <u>$ 3,000</u>
Bad debts expense for the year to be recorded <u> $ 28,000</u>
The accounting entry to record this is as follows:
Bad debts expense Debit $ 28,000
Allowance for uncollectible accounts Credit $ 28,000
Answer:
A competitive price-searcher market is a market where there are low entry or exit barriers, and the suppliers can determine the price of their products. Some economists believe that this type of market is inefficient because the suppliers are not able to sell enough output in order to minimize their average costs. Since the demand is very elastic in price searcher markets, any price change will cause a drastic change in the quantity demanded.
Price searcher markets share a lot of similarities with perfect competition markets, the main difference is that suppliers and consumers are not price takers. This means that any supplier can change their sales output by changing their price, which leads to greater competition.
Answer:
False
Explanation:
In the initial period, the prepaid expenses should be recorded in the assets hand side of the balance sheet under the current asset column
But when some adjustments are made regarding this in terms of gains or expenses incurred, the same should be presented on the income statement
Hence, the given statement is false as it is recorded in the assets only during the initial period
Answer:
(C) Product X = $880; Product Y = $2,240
Explanation:
The applied overhead will be calculate by the product of the cost diver and the overhead rate:
<u>Cost driver for each product:</u>
Product X 3MH and 1LH
Product Y 4MH and 8LH
<u />
<u>Overhead rate: </u>
240 per machine hour
and 160 per labor hour
Product X 3MH x $240 + 1LH x $160 = 880
Product Y 4MH x $240 + 8LH x $160 = 2,240
Answer:
Invalid
Explanation:
Since it is stated in the will, that upon his death should the assets be transferred, it means that Silvia doesn't get anything until Mr Jacob ceases to be alive.
With the new development as regards Mr Jacob living for 6 more months before dying, Silvia has no assets yet and as such cannot transfer anything to Jacob Jnr.
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