Answer:
Explanation:
The adjusting entry to record the credit losses is shown below:
Bad debt expense A/c Dr $45,000
To Allowance for doubtful debts $45,000
(Being bad debt is recorded)
The credit loss computation is shown below:
= Credit sales × estimated percentage
= $900,000 × 5%
= $45,000
For recording this transaction, we debited the expense account and credited the contra asset account.
Answer:
The market contains huge numbers of buyers.
Explanation:
Organization buying is the process through which formal institutions establish the basis for purchasing products or services. It involves identifying, evaluating, and picking the ideal option from the available brands and suppliers. A typical organization will have a team of skilled workers directly or indirectly involved in the buying process. Businesses that purpose to maximize profits will go the extra mile to get the best deals on their purchases.
Organization buying will involve the participation of many people. Common characteristics of organization buying are
- Several people in the organization influence buying
- The organizational buyers are qualified professionals in purchasing.
- A lot of purchasing occurs in direct dealing with producers.
- The purchases are in large quantities
- Close relationships and service are required.
Answer:
Credit Cash for $5,000 on June 25.: Both methods
Credit Cash for $4,900 on June 25.: Neither method
Debit Discounts lost for $100 on June 25.: Net method
Debit Merchandise inventory for $5,000 for June 10.:Gross method
Explanation:
Based on the information given the required entries to record and pay for this purchase under both the GROSS METHOD and the NET METHOD by matching the action on the left with the method on the right will be :
Credit Cash for $5,000 on June 25.: BOTH METHODS
Credit Cash for $4,900 on June 25.: NEITHER METHOD
(100%-2%*$5,000)
Debit Discounts lost for $100 on June 25.: NET METHOD
(2%*$5,000)
Debit Merchandise inventory for $5,000 for June 10.:GROSS METHOD
Answer:
Vaughn should produce Plain as it makes greater profit.
Explanation:
Vaughn Manufacturing can sell all the units it can produce of either Plain or Fancy but not both.
Plain has a unit contribution margin of $86 and takes two machine hours to make and Fancy has a unit contribution margin of $111 and takes three machine hours to make.
There are 2400 machine hours available to manufacture a product.
Profit per machine hour for Plain
= 
= $43
Profit per machine hour for Fancy
= 
= $37
The difference in profit
= $43 - $37
= $6
Plain makes $6 more profit per machine hour than Fancy.
