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ozzi
3 years ago
9

On April​ 1, 2017, Planet Services received​ $8,000 in advance of performing the services from a customer for three months of se

rvice long dash— ​April, May and June. What would be the journal entry to adjust the accounts at the end of​ May? (Do not round any intermediate​ calculations, and round your final answer to the nearest​ dollar.)A. Debit Service Revenue​ $5,333, and credit Accounts Receivable​ $5,333.B. Debit Unearned Revenue​ $5,333, and credit Service Revenue​$5,333.C. Debit Unearned Revenue​ $8,000, and credit Service Revenue​$8,000.D. Debit Service Revenue​ $2,667, and credit Unearned Revenue​$2,667.
Business
1 answer:
mestny [16]3 years ago
6 0

Answer:

The correct answer is B

Explanation:

The journal entry which is to be recorded for the service revenue at the end of May is as follows:

Unearned Revenue A/c..............Dr    $5,333​

             Service RevenueA/c...........Cr    $5,333.

Working Note:

Revenue = Total amount × Number of months / Total months

where

Amount is $8,000

Number of months means at the end of May which is a 2nd month

Total months is 3 months (April, May and June)

= $8,000 × 2 / 3

= $5,333

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Riggs Company purchases sails and produces sailboats. It currently produces 1,300 sailboats per year, operating at normal capaci
mr_godi [17]

Answer:

The president of Riggs has missed something.

She should make the Sail instead of buying because its cheaper to manufacture than purchasing it outside.

Explanation:

<u>Cost of Manufacturing the Sails:</u>

Direct materials        $93

Direct Labor              $83

Total                         $173

The president of Riggs has included the $90 overhead  based on $78,000 of annual fixed overhead that is allocated using normal capacity in the cost of manufacturing the sail which is incorrect.

Riggs Company is operating at 80 % of full capacity, hence utelizing the 20% excess capacity would not expand its fixed costs.

Thus said the current fixed cost are irrelevent for this decison and would be incurred whether or not Riggs Company utilizes the excess capacity

<u>Conclusion:</u>

The cost of making the sail is $173 which is lower than the cost of buying them at $ 258.

I would advise The president of Riggs to make the sail by utilizing the excess capacity since its cheaper than purchasing it outside.

5 0
3 years ago
Read 2 more answers
How can you attract whole sale seller​
Kay [80]

Answer:

10 ways to increase your wholesale sales

1. Offer specials that bring retailers better-than-wholesale prices.

2.Provide outstanding customer service.

3.Make wholesale ordering, delivery, and billing as seamless as possible.

4 Streamline your operations.

5.Make order recommendations.

6.Create compelling, eye-catching campaigns.

and if you need more answer than please follow me

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6 0
3 years ago
Previous
densk [106]
OB is false. Hope that answers your question
6 0
2 years ago
Prist Co. had not provided a warranty on its products, but competitive pressures forced management to add this feature at the be
Naddika [18.5K]

Answer:

Event 1:

Debit Warranty expense for $8.416.

Credit Warranty liability $8,416.

Event 2:

Debit Warranty liability for $8,416.

Debit Warranty expenses for $11,484.

Credit Cash for $19,900.

Explanation:

Estimated warranty liability = $4,208,000 * 0.2% = $8,416.

Excess of actual and over extimated warranty liability = $19,900 - $8,416 = $11,484

The journal entries will look as follows:

<u>Details                                         Dr ($)                  Cr ($) </u>

Warranty expense                      8.416

Warranty liability                                                   8,416

<em><u>(To record the estimated warranty liability).                      </u></em>

Warranty liability                         8,416

Warranty expenses                   11,484

Cash                                                                   19,900

<em><u>(To record actual warranty cost).                                        </u></em>

8 0
3 years ago
The following information pertains to the Frameworks Corporation for May. Calculate the cost of goods sold for the period:Beginn
ANTONII [103]

Answer:

The correct answer is D.

Explanation:

Giving the following information:

Beginning Finished Goods Inventory $19,500

Ending Finished Goods Inventory$18,000

Cost of Goods Manufactured $126,800

To calculate the cost of goods sold we need to use the following formula:

COGS= beginning finished inventory + cost of goods manufactured - ending finished inventory

COGS= 19,500 + 126,800 - 18,000= $128,300

6 0
3 years ago
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