Answer:
The amount a seller is paid minus the cost of production.
Explanation:
Producer surplus refers to the difference between the producer's willingness to accept the price for the product and the price they actually received for the product.
It is calculated as follows:
Producers surplus = Amount a seller received - Cost of production
Or
Producers surplus = Actual amount received - Willingness to accept a price
It is a measure of producers welfare.
Answer:
Tax allocation within a period is the practice of allocating the income tax for a period to such items as income before extraordinary items, extraordinary items and period adjustments.
Explanation:
The justification for tax allocation within a period is to produce financial statements which disclose an appropriate relationship of the different taxable income.
Answer:
1. more capital is needed
2. problem of customers
Complete Questions:
The following account balances were extracted from the accounting records of Thomas Corporation at the end of the year: Accounts Receivable $1,105,000. Allowance for uncollectible accounts (credit) $37,000. Uncollectible-Account Expense $64,000
. What is the net realizable value of the accounts receivable?
A. $1,142,000
B. $1,169,000
C. $1,105, 000
D. $1,068,000
Explain
Answer:
Thomas Corporation
D. $1,068,000
Explanation:
1. Data and Calculations:
Accounts Receivable $1,105,000
less Allowance for uncollectible accounts (credit) $37,000
Net realizable value = $1,068,000
2. Thomas Corporation's Accounts Receivable balance is a debit balance and the Allowance for uncollectible accounts is a credit balance. Since the Allowance for uncollectible accounts is a contra account to the Accounts Receivable, when the two are netted, the balance is the net realizable value of the Accounts Receivable.
3. Thomas cannot include the Uncollectible-Account Expense of $64,000
in the computation of the net realizable value since it has been charged and closed to the income summary and as a temporary account, it cannot be treated as other permanent accounts.
