Answer:
-Regulatory compliance costs FIXED COST
-Salaries of top management and key personnel FIXED COST
-Cost of metal used in manufacturing VARIABLE COST
-Cost of wood used in manufacturing VARIABLE COST
-Mortgage payments FIXED COST
-Industrial equipment costs FIXED COST
-Interest on debt FIXED COST
-Postage and packaging costs VARIABLE COST
Answer: The Statement is TRUE.
This organization is an expample of a learning organization.
A learning organization is an organization format that focuses on managing the exchange of knowledge at all levels, hierarchical and functional of the company.
This type of business organization assumes that the knowledge accumulated in employees only has value if it flows, from individual to individual; from group to group; from organization to organization. The basic definition would be: the learning organization is one that facilitates the learning of all its members, globally sharing information and undergoing continuous transformation in itself.
Answer:
A) Debit Accounts Receivable-M. Simmons and credit Bad Debts Expense: debit Cash and credit Accounts Receivable-M. Simmons.
Explanation:
June 16, 2018 (Simmons's debt is written off)
- Dr Bad Debts Expense account 200
- Cr Accounts Receivables account 200
Since Simmons's debt is written off as bad debt, accounts receivable must be decreased (credited) and the bad debt expense recorded (debited).
Oct 14, 2018 (Simmons pays his debt, first the write off must be reversed)
- Dr Accounts Receivables account 200
- Cr Bad Debts Expense account 200
Before recording the payment, the write off must be reversed.
Oct 14, 2018 (Simmons payment is recorded)
- Dr Cash account 200
- Cr Accounts Receivables account 200
Since the payment was received, cash should increase (debited) and the accounts receivable should decrease (credited).
Answer:
Provision = $439700*3% = $13,191
Bad debts expense = $13,191 - $3,041 = $10150
Journal entries
Particulars Debit Credit
a) Bad debts expenses $10,150
Allowance for doubtful accounts $10,150
(To record Bad debt exp )
b) Bad debts expenses (13191+918) $14,109
Allowance for doubtful accounts $14,109
(To record bad debts expenses)
