Answer:
Inventory turnover
Explanation:
Inventory turnover is the ratio which states how many times the company has sold as well as replaced the inventory during the stated period. The company could divide the days in the year through the formula of inventory turnover in order to compute the days it need to sell the inventory.
So, in the case, if she compute the inventory turnover ratio for the store and then compare with other stores. And higher inventory turnover ratio states the greater amount of efficiency in the business operations. The objective is to maximize the use of the cash and minimize the inventories.
Answer:
Option D Allowance for noncollectable Accounts.
Explanation:
The bad debt recovery recording is a two step process.
Step 1 Reverse the entry of bad debt with the amount received
Dr Trade Receivable $40,000
Cr Bad debts $40,000
Step 2 Now record the receipt of amount as a reduction in trade receivable and increase in cash asset.
Dr Cash $40,000
Cr Trade Receivables $40,000
The only account unconsidered here was Allowance for the noncollectable account.
Answer:
This method encourages the selling division to operate efficiently.
Explanation:
Absorption cost transfer pricing is very essential to determine the right amount in which goods and services will be sold in the market. It involves setting a price for a particular product with inclusion of all its variable costs.
Absorption cost transfer pricing enables an organization to maximise profit this is because all the different cost incurred during production are added to the price of the product.
Answer:
a) See the image attached for the sheet of closing entry
b) New balance = (174000-111000-12000) = 51000
