Answer:
The required adjusting entry to record estimated bad debts expense is as follows:
Debit Bad Debts Accounts with $39,960
Credit Allowance for Doubtful Accounts with $39,960
Being the adjustment to bring the Allowance for Doubtful Accounts up a new credit balance of $43,625.
Explanation:
The Allowance for Doubtful Accounts had a credit balance of $3,665. Since management had estimated that $43,625 of the Accounts Receivable balance would be uncollectible, this means that the difference $39,960 ($43,625 - $3,665) would be the adjusting amount to bring the balance up-to-date.
Remember that the Allowance for Doubtful Accounts is a contra account to the Accounts Receivable. It is used to reduce the balance of the Accounts Receivable based on collectibility judgement or estimate which management makes out of experience. The balance in this account is, therefore d,educted from the Accounts Receivable in the Balance Sheet in order to obtain the net Accounts Receivable balance.
The account that expenses the increase in this account is the Bad Debts Expense Account, which is taken to the Income Statement to reduce the income.
Answer:
The question is not complete, below is the completed question:
The wage rate for widget makers is currently $25 per hour and Ajax hires 20 widget makers. If the wage rate were decreased to $20, what would happen to the marginal revenue product for labor at Ajax?
A) It would remain the same.
B) It would increase since Ajax's demand for labor curve will shift.
C) It would increase since the price of widgets would decrease.
D) It would decrease since Ajax will hire more workers.
Answer:
The correct answer is:
It would decrease since Ajax will hire more workers. (D)
Explanation:
Marginal Revenue Product for Labour (MRPL) is the extra labour generated when an extra worker is employed. In this case, since the wages decreased from $25 to $20, Ajax will hire more workers, because it can afford to pay more workers, meanwhile, the extra labour generated on the employment of an extra worker will decrease. The MRPL is used by firms to determine the number of labour to employ since they have to employ the right amount of labour to maintain profit and prevent diminishing returns associated with excess labour employment.
If Niall is an assembly-line worker in a car-manufacturing firm in detroit. assembly-line workers like niall constitute the <u>Factors of production</u> of the car-manufacturing firm.
<h3>
What is Factors of production?</h3>
Factors of production can be defined as factors, inputs or resources that contributed to the production of goods and services.
Labor, land , capital as well as entrepreneurship play a major role when it comes to production of goods and service as they are the factors that contributed to the production of goods and services which in turn means that they are essential.
Therefore If Niall is an assembly-line worker in a car-manufacturing firm in detroit. assembly-line workers like niall constitute the <u>Factors of production</u> of the car-manufacturing firm.
Learn more about Factors of production here:brainly.com/question/17518033
#SPJ1
Answer:
$900
Explanation:
The computation of the amount of the overhead allocated is shown below:
But before that the predetermined overhead rate is
As we know that
Predetermine overhead rate is
= Estimated manufacturing overhead ÷ estimated direct labor hours
= $450,000 ÷ $150,000
= $3
Now the overhead allocated is
= 300 direct labor hours × $3
= $900
Answer:
The cost per machine will be $1,560.
Explanation:
Cost of materials is given at $18,000.
The cost of direct labor is $9000.
The manufacturing overhead cost is $6000.
Beginning work in process is $15,000.
The ending balance is $9000.
The number of machines completed is 25.
The total cost of making machines will be
=Cost of materials +cost of direct labor+ manufacturing overhead cost+Beginning work in process-ending work in process
=$(18000+9000+6000+15000-9000)
=$39,000
The cost per machine will be
=Total cost of making machines /number of machines
=$39,000/25
=$1,560
