Management accounting is the process of measuring and
analyzing financial and non-financial information that is relevant to the
company. This is an important part of the
Controller’s function in an organization since the Controller directly reports
to the chief financial officer. The report contains pieces of information which
contributes in making strategic decisions to achieve the goal of the
organization.
Answer:
$114,000
Explanation:
Given that,
Net credit sales = $2,250,000
Opening allowance for Doubtful Accounts = $36,000
Uncollectible accounts receivable written off = $90,000
Firstly, we need to find the excess amount to be adjusted to allowance for Doubtful Accounts. It is calculated as follows:
= Uncollectible accounts receivable written off - Opening allowance for Doubtful Accounts
= $90,000 - $36,000
= $54,000
Allowance amount:
= 10% of the balance in receivables
= 0.1 × $600,000
= $60,000
Therefore, the required adjustment to the Allowance for Doubtful Accounts at December 31, 2017 is determined by summing up the excess amount and allowance amount.
= Excess amount to be adjusted to allowance for Doubtful Accounts + Allowance amount
= $54,000 + $60,000
= $114,000
<span>Answer:
Gross Pay: $1200
Less Health Ins: (42.50)
Taxable Pay: 1157.50
SS Tax: 71.77 (1157.50 *.062)
Medicare Tax: 16.78 (1157.50 *.0145)
FIT: 91.79
Net Pay: 977.17
FIT calcualted as follows: Taxable less allowances (1157.50 less (71.15*4) = 872.9
(872.9 * .15)-39.15 = 91.79</span>
Answer:
$25,000
Explanation:
The value of inventory at the end of the end of the period will be equal to
Value of inventory = Cost of goods sent less the cost of goods already sold.
<em>Remember the arrangement is that of agency, hence the goods are not deemed to be sold except the agent has been able to exchange them for revenue in a sales contract with his own buyers.</em>
Also the sales commission would be reported under a separated ledger which will be reported as part of the operating expenses.
Amount of inventory = $105,000 - $80,000
= $25,000
