If Inez is not satisfied with the painting by Josh, Inez does not have to accept the portrait or pay Josh any money. Inez does not have to pay Josh at all.
<span>Double-entry bookkeeping, in accounting, is a system of bookkeeping so named because every entry to an account requires a corresponding and opposite entry to a different account. The double entry has two equal and corresponding sides known as debit and credit.</span>
Answer:
Accrual basis of accounting
Explanation:
Accruals basis accounting (accruals accounting, the matching concept) depicts the effects of transactions and other events and circumstances on a reporting entity’s economic resources and claims in the periods in which those effects occur, even if the resulting cash receipts or payments occur in a different period.
Revenue from sales and other income should be reported in the period when the income arises (which might not be the same as the period when the cash is received from the customer / client).
Based on the above discussion it can be concluded that the Portie's practice is an example of accrual basis of accounting.
Answer:
work in process inventory
Explanation:
The journal entry to record overhead applied is shown below:
Work in progress inventory A/c Dr XXXXX
To Factory overhead A/c XXXXX
(Being applied overhead is recorded)
And, the journal entry to record over applied is presented below:
Manufacturing overhead A/c Dr XXXXX
To Cost of Goods sold A/c XXXXX
(Being over-applied overhead is recorded)
Over applied is come when actual overhead based on predetermined rate is more than the actual manufacturing overhead
