Answer:
The correct answer to this question is C) the adjustment entry would be debit to allowance for doubtful account and credit to account receivables.
Explanation:
Under the given allowance method, if a company or sole proprietor identifies a customer's receivables account as un collectible, than that amount ( un collectible ) would be deducted from the accounts receivables. Now by making the deduction from the account receivables would only have the effect on balance sheet not the income statement because for such losses an adjustment entry of bad debt expense has been made in income statement. The adjustment entry for uncollectibe receivables would be debit to allowance for account receivables and credit to account receivables.
Answer:
External Controls
Explanation:
Based on the information provided within the question it can be said that the the managers at XYZ seem to be using External Controls. These are outside party that can affect the way that the business is controlled. Since the managers are utilizing supervision and other administrative systems, then they are using outside help instead of handling it themselves with tools at their disposal, thus using External Controls.
Answer:
d.It is rare to need further investigation beyond a preliminary analysis when a manager misses a performance target.
Explanation:
Performance evaluation can be regarded as process whereby manager pass evaluation or examination on employee on the work behavior of employee through comparison with preset standards.
In the use of support department and joint cost allocations for performance evaluations ;
✓A manager may not be responsible for the allocation of support department costs if he or she cannot control the square footage of the areas upon which cost allocations are based.
✓A manager may miss a performance target because direct materials costs are too high.
✓A manager may miss a performance target because he or she has no control over the joint processes prior to his or her department which is after the split-off point.