The answer is B. Blueprints for a house. Hope it help
Answer:
$6,000
Explanation:
When a company makes sales on account, debit accounts receivable and credit sales. Based on assessment, some or all of the receivables may be uncollectible.
To account for this, debit bad debit expense and credit allowance for doubtful debt. Should the debt become uncollectible (i.e go bad), debit allowance for doubtful debt and credit accounts receivable.
Since the Allowance for Doubtful Accounts has a credit balance of $1,200 before adjustment at December 31, 2016, the additional amount to be allowed
= $7200 - $1200
= $6000
This will be posted as
Debit Bad debt expense $6000
Credit Allowance for doubtful debt $6000
B would be the correct answer i believe
A) Accounting profits dont take implicit costs into account, only "real" or quantifiable costs.
Thus the present value of a 120,000 lease at 5% for three years with explicit costs of $40,000 maintenance is:
PV = [ FV/(1+r)^n ] - (Explicit Cost)
PV = 120000/(1.05^3) - (40000*3)
B) same thing but add implicit costs ...
PV = 120000/(1.05^3) - (40000*3) - (55000*3)
Answer:
$1,275,000
Explanation:
The computation of the contribution margin is shown below:
As we know that
Contribution margin = Sales - variable cost
or
Selling price per unit - variable cost per unit
And, the direct material per unit, direct labor per unit, and the Variable overhead per unit are variable cost
So, if 50,000 units are sold, the contribution margin per unit is
= 50,000 × ($33 - $1.50 - $2.50 - $3.50)
= $1,275,000