Construction expenditures should be debited when <u>D. The bill is approved for payment.</u>
<u>Explanation:</u>
In the above scenario, Acme Construction Co. submitted bill amount of $1,200,000 on a construction contract. The payment of the bill was approved on May 2. According to the contract, 10% was subject to retention.
This construction expenditure is debited when the bill is approved for payment. Contract includes all the details regarding payment and terms and conditions between the companies or parties.
Once the bill submitted by company is approved, then the retention amount will be automatically debited.
Answer:
C Protection against inflation
Explanation:
As we know that there are three functions of money i.e.
1. Unit of account
2. Store of value
3. Medium of exchange
There is only 3 functions of money that are shown above
So the protection against inflation would not be considered for the same
And, these 3 would represent the functions of money and can be treated as the unit of account, store of value and the medium of exchange
Hence, the option c is correct
Answer:
The correct answer is c) $9,000
Explanation:
If net credit sales are $300,000 and bad debt expense is estimated at 3% of net credit sales.
$300,000 x 3%= $9,000
or
$300,000 x 0.03= $9,000
The amount of the adjusting entry to record the estimated uncollectible accounts receivables is $9,000
Answer:
Unitary cost= $12
Explanation:
Giving the following information:
direct materials $5
direct labor $4
variable overhead $3
The variable costing method incorporates all variable production costs (direct material, direct labor, and variable overhead) to calculate the product unitary cost.
Unitary cost= 5 + 4 + 3= $12
