Answer:
Bad debts expenses shall be $ 850
Explanation:
The balance in the bad debts expense account shall be the aggregate of the amounts written off and the estimated uncollectible accounts based on ageing at the year end.
Amount written off during the year $ 650
Estimated uncollectible account provided at year end <u>$ 200</u>
Total Bad Debts expenses $ 850
Answer:
weighted average
Explanation:
An advantage of the weighted average costing method is that the cost of goods sold approximates its current cost. This is mainly due to the fact that the cost of each unit is made equal to the same cost of all units that are currently available for sale during that extended period of business. Therefore approximating its total current cost.
Conversion costs are the combination of direct labor costs plus factory overhead costs. Hence, conversion costs exclude the cost of direct materials.
So, here the conversion cost = Direct labor cost + Factory overhead cost
= $ 84,000 + $ 45,500
= $ 129,500
since he has to pay it 2 times a year, it should be divided by 6. so 84/6=14
Answer: C. $14
Answer:
Interest rate = 4%
Explanation:
Given:
Face value of bond = $5,000
Annual coupon payment = $200
Interest rate = ?
Computation of interest rate on bond:
Interest rate = (Annual coupon payment / Face value of bond ) × 100
Interest rate = ($200 / $5,000) × 100
Interest rate = (0.04) × 100
Interest rate = 4%
Therefore, annual interest rate on bond is 4%
