This allows workers to work with less pressure on their job
assignments. It also helps them develop
a sense of time management when doing their work. In some cases, it makes them more creative by
giving them a free hand on their approach to doing their work.
Answer:
Debit Bad debt expense $1 million
Credit Account receivables $1 million
Explanation:
When items are sold on account, the required entries are debit to account receivables, credit to revenue. If that the end of the year, $5 million remain due from customers, it means that this is the account receivable at the end of the year. As such, If the company estimates that 20% of the total year-end accounts receivable will not be collected, it means that 20% of the receivable has gone bad.
Amount gone bad = 20% of $5 million = $1 million
Required entries for this are;
Debit Bad debt expense $1 million
Credit Account receivables $1 million
Being entries to recognize bad debt
Answer:
$15.34
Explanation:
The formula and the computation of the predetermined overhead rate is shown be
Predeterminer overhead rate = Manufacturing overhead ÷ direct labor hours
where,
Manufacturing overhead is
= $359,860 + $8,300
= $368,160
And, the direct labor hours is 24,000
So, the predetermined overhead rate is
= $368,160 ÷ 24,000
= $15.34
Answer:
The multiple choices missing from the question are:
a. $60,000.
b. $50,000.
c. $57,000.
d. $59,000.
Option D,$59000 is correct
Explanation:
The recorded cost of the equipment is made of purchase cost,the sales tax since it is not recoverable,shipping cost as well as the installation cost.
The recorded cost is computed thus:
Purchase price $50,000
sales tax $4,000
shipping $3,000
installation $2,000
total cost $59,000
The rationale for including shipping and installation costs is that asset cost should include cost of bringing the asset to current location(shipping) and condition(installation)