Answer:
$54,650
Explanation:
Total Net operating income from the two divisions is the difference between the total sales and the total expenses. The total expense is made up of the fixed cost and variable cost. Whilst the variable cost is measured and unique to each departments, the fixed cost is not attributable to a single department.
The variable cost and sales are dependent on the level of activities. The sales less the variable cost gives the contribution margin.
As such, contribution less fixed cost gives the net operating income.
Common fixed cost
= ($77,100 + $43,100 - $10,900)/2
= $54,650
This cost would have been subtracted from each department to get the net operating income hence the division by 2.
Answer:
C.
Explanation:
Economic globalization is a historical process, the result of human innovation and technological progress. It refers to the increasing integrations of the economies arround the world, particularly through the movement of goods, services and capital across borders.
Is foundamentally the integration of various political, economic and cultural systems. The conversion and interconnection of people, places and ideas that collectively transforms the economy and increases the productivity and growth of businesses.
The Adjustment entry to record the estimated bad debts include debit to Bad Debt Expense of $900 and credit to Allowance for Doubtful Accounts of $900. Thus 2nd and 5th options are correct.
<h3>What is Bad debt?</h3>
Bad Debt refers to the amount of loan which cannot be recovered. It is an outstanding balance which is irrecoverable. Thus in simply words it means the amount which will not be paid by the customer.
According to the given question, The credit balance is $100 in Allowance for Doubtful Accounts.
The credit sales method a specific percentage of credit sales represent bad debts of the previous period. Thus the difference amount comes under Allowance for Doubtful Accounts.
Journal Entry for the estimated bad debts is as follows:
DR. BAD DEBT EXPENSE $900
To CR. ALLOWANCE FOR DOUBTFUL ACCOUNTS $900
Learn more about Bad Debt here:
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Answer:
Land, Equipment, and Inventory will be restated on the closing date i.e. December 31, 2020. The rate of the currency exchange from local to foreign currency for equipment is on the day of purchase which is February 1, 2020.
Explanation:
1-Balance sheet items are restated on the closing date.
2-P & L items are restated on the transaction date.
As the items Land, Equipment and Inventory are all the balance sheet items, thus they will be stated on the closing date i.e. December 31, 2020.
Furthermore, the functional currency is foreign currency. Since the equipment is purchased in the domestic currency it has to be translated into the foreign currency at the rate as on the date of purchase i.e; February 1, 2020.
Answer:
profit sharing
Explanation:
profit-sharing plan can be regarded as retirement plan which is designed to let an employee to have a share in the profits of a firm. In this particular plan some percentage of the profit made by the company,firm can be received by the employee using the quarterly or annual earnings of the employee as the basis.
