Explanation:
The journal entry to record the estimated uncollectible accounts is shown below:
Bad debt expense Dr $7,500
To Allowance for uncollectible accounts $7,500
(Being the bad debt expense is recorded)
The computation is shown below:
= Estimated amount for uncollectible accounts - credit balance in allowance for uncollectible accounts
= $12,000 - $4,500
= $7,500
Based on how each product consumes activities, activity-based costing allocates selling and administrative expenses. Hence, Option D is the correct statement.
<h3>What do you understand by Activity-based costing?</h3>
A costing technique that identifies activities in an organization and assigns the cost of every activity to all services and products in line with the real consumption via way of means of each is referred to as Activity-based costing.
This version of the costing technique assigns greater indirect costs into direct fees as compared to traditional costing.
Hence, Based on how each product consumes activities, Activity-based costing allocates selling and administrative expenses. Option D is the correct statement.
learn more about Activity-based costing:
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I believe that would be efficency.
Answer:
B. $2,732,000.
Explanation:
After-tax operating income (ATI) = $3,200,000
Weighted-average cost of capital (WA) = 9%
Assets (A) = $7,000,000
Liabilities (L) = $1,800,000
Economic value added (EVA) is given by:
![EVA = ATI -[(A-L)*WA]\\EVA = \$3,200,000 - [(\$7,000,000-\$1,800,000)*0.09]\\EVA = \$2,732,000](https://tex.z-dn.net/?f=EVA%20%3D%20ATI%20-%5B%28A-L%29%2AWA%5D%5C%5CEVA%20%3D%20%5C%243%2C200%2C000%20-%20%5B%28%5C%247%2C000%2C000-%5C%241%2C800%2C000%29%2A0.09%5D%5C%5CEVA%20%3D%20%5C%242%2C732%2C000)
Endotrope's economic value added is $2,732,000
