Answer:
a. 15 times
b. 24.3 days
Explanation:
The computation is shown below:
a. Accounts receivable turnover
Account receivable turnover ratio = Net credit sales ÷ Average accounts receivable
= $3,150,000 ÷ $210,000
= 15 times
b. Number of days sales in receivables = Total number of days in a year ÷ accounts receivable turnover ratio
= 365 days ÷ 15 times
= 24.3 days
Answer:
d. $1050.
Explanation:
We multiply each account balance by the expected uncollectible amount and then addd them to get the expected total for doutful accounts
![\left[\begin{array}{cccc}Date&Amount&Expected&uncollectible\\$not due&10000&0.02&200\\$up to 30&5000&0.05&250\\$up to 60&3000&0.1&300\\$more than 61&800&0.5&400\\&&Total&1150\\\end{array}\right]](https://tex.z-dn.net/?f=%5Cleft%5B%5Cbegin%7Barray%7D%7Bcccc%7DDate%26Amount%26Expected%26uncollectible%5C%5C%24not%20due%2610000%260.02%26200%5C%5C%24up%20to%2030%265000%260.05%26250%5C%5C%24up%20to%2060%263000%260.1%26300%5C%5C%24more%20than%2061%26800%260.5%26400%5C%5C%26%26Total%261150%5C%5C%5Cend%7Barray%7D%5Cright%5D)
Balance of the allowance account: 100
The expense will be the adjustment made on the allowance to get the expected balance of 1,150
1,150 - 100 = 1,050
we increase the allowance bu 1,050 to get our expected uncollectible fro maccounts receivable agaisnt the bad debt expense ofthe period.
Answer:
b. the more wealth she has, the less utility she gets from an additional dollar of wealth.
Explanation:
Utility is the satisfaction derived from a good. Total Utility is the total satisfaction from all units of a good. Marginal Utility is the additional satisfaction from an additional unit of a good.
The Law of Diminishing Marginal Utility states that : As consumer gets more & more of a good, the additional utility (satisfaction) from each successive unit keeps on declining. It implies that marginal utility decreases, & total utility increases at a decreasing rate.
Therefore : A person has more marginal utility (additional satisfaction) from an additional dollar, if he has less money (dollars). And, relatively less marginal utility from an additional dollar if he has more money (dollars).
Example : A rich person having millions of dollars would get less marginal utility (additional satisfaction) from gaining a single dollar, than a poor person having few dollars.
Answer:
$3,200 overapplied
Explanation:
The computation of the total underapplied or overapplied factory overhead is shown below:
Given that
Actual total factory overhead costs incurred is $45,400
Now Overhead applied to production
= (Total factory overhead application rate per standard DLH × Standard direct labor hours allowed)
= $2.70 × 18,000
= $48,600
As we can see that the overhead applied amount is more than the actual amount so the overhead cost would be overapplied i.e.
= $48,600 - $45,400
= $3,200 overapplied
