Answer:
$1,700,000
Explanation:
The computation of the NET accounts receivable (the cash realizable value) at December 31, 2019 is shown below:
= Account receivable - allowance for doubtful debts
= $2,000,000 - $300,000
= $1,700,000
By deducting the allowance for doubtful debts from the account receivable we can get the net account receivable or the cash realizable value
Therefore we ignored the bad debt expense
Answer:
Preparing, reading, capturing key ideas, and reviewing.
Explanation:
Answer:
c) $ 24,200
Explanation:
Computation of Total Period costs
Fixed selling and Administrative expenses $ 8,800
Variable Selling and Administrative costs
$ 7 per unit * 2,200 units sold <u>$ 15,400</u>
Total period costs $ 24,200
The fixed manufacturing overhead is part of manufacturing costs so not considered.
The variable selling and administrative costs are based on units sold and not units produced.
Answer:
=$5,230,000
Explanation:
Annual Depreciation=Depreciable Value×Units produced during the year estimated total production
The units of the depreciation method start by calculating the depreciable amount.
Depreciable amount = Assets cost - salvage value
=$21,220,000.-$4,000,000
=$17,220,000
depreciation expense per unit= depreciable amount/production capacity
=$17,220,000/210,000 per tone
=$82 per tone
During the year, 195,000 were extracted.
The depreciation value for the year will be
= 82 x 195,000
=$15,990,000
book value will be asset cost minus depreciation expense
=$21,220,000 -$15,990,000
=$5,230,000
.
