Answer:
The accrual basis provides more useful information for decision makers as it matches better revenue against expenses.
Explanation:
net earnings under the cash basis of accounting:
service revenue $22,000
less operating expenses $13,000
less insurance $3,600
Net earnings $5,400
net earnings under the accrual basis of accounting:
service revenue $28,000
less operating expenses $14,500
Net earnings $13,500
The accrual basis provides more useful information for decision makers as it matches better revenue against expenses.
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Answer:
January 24, 2022, Madonna Inc.'c account is written off
Dr Allowance for doubtful accounts 4,245
Cr Accounts receivable 4,245
the cash realizable value of the accounts receivable account:
- before the write off = $653,700 - $24,200 = $629,500
- after the write off = ($653,700 - $4,245) - ($24,300 - $4,245) = $629,500
The net balance of the account does not change because the allowance for doubtful accounts is a contra asset account that already decreased the accounts receivable balance.
Answer:
<em>c. market lead</em>
Explanation:
For about all candidates, salary is an important job characteristic.
Organizations have an employing benefit if their <em>strategy is to pay for a lead market approach, that is, compensate more for a job than the existing market salaries. </em>
Higher pay can also compensate for the less precious features of a job.
Answer:
See below
Explanation:
a. Given that the overhead application rate is $21.40 per direct labor hour and total labor hours used during the period are 8,250 hours
Overhead applied = $21.40 × 8,250
Overhead applied = $176,550
Actual overhead incurred = $172,500
Then, the manufacturing overhead is over applied for the period by $4,050
I.e
= Overhead applied - Actual overhead incurred
= $176,500 - $172,500
= $4,050
b. With regards to the above, if the over applied overhead is closed out to cost of goods sold, it means that the cost of goods sold amount would decrease . The reason is that since cost of goods sold is deducted from revenue to determine gross margin, a reduction in cost of goods sold would bring about an increase in the company's gross margin for the period by $4,050
Answer and Explanation:
The opportunity cost for pizza making of Megan is 2 ÷ 3 root beer gallon
And, the opportunity cost for pizza making of Susan is 5 ÷ 7 root beer gallon
Also Megan earned an advantage for pizza making as she takes only two hours while on the other hand Susan takes hours
And, the opportunity cost of Megan is lower than the Susan that results that Megan has the comparative advantage this determines that there is a exchange for a root beer what Susan made
It could be better off by 5 ÷ 7 root beer gallon
And, the lesser price could be better of 2 ÷ 3 root beer gallon
