Answer:
The statement is True as well as correct
Explanation:
Allowance method is the financial term which is defined as the uncollectible accounts receivable procedure that reports the estimate of the bad debt expense in the same accounting or fiscal year as the sale.
Under this method, it is used to adjust the accounts receivable which appears on the balance sheet.
For example,
If the company has the credit sales of $800,000 in December and estimate that the 4% will be uncollectible. Then using this method, computing the uncollectible as:
Bad debt expense = Sales × Estimate uncollectible
= $800,000 × 4%
= $32,000
So, this estimate the bad debt expense rather than wait to see which customer will not able to collect.
Answer: Licensing
Explanation:
John's ingredient is his intellectual property. By giving the right regarding the usage of the ingredient to another business entity and by receiving a sales volume related royalty payment for each box sold, John is involved in a licensing agreement.
Two parties are involved in each licensing agreement: the licencor and the licencee. In this example, John is the licencor and the cereal manufacturer is the licencee. Both of the parties sign the licensing agreement, which is active over a specified amount of time.
Licensing is not to be confused with franchising. It refers to a specific business model when the franchisee operates under the brand (logo and trademark) of the franchiser, but essentially keeps its independence branch-wise. Best examples are McDonald's and KFC.
a. How much would Kaufman Manufacturing’s total operating income increase?
Kaufman Manufacturing's total operating income would increase by $300,000.
To calculate the increase in Kaufman Manufacturing's total operating income, we need to compare the cost of purchasing the materials from outside suppliers with the cost of producing the materials in the Electronic Division and transferring them to the Appliance Division at the established transfer price.
If Kaufman Manufacturing purchases 150,000 units of materials from outside suppliers, the cost would be $25 per unit, which gives a total cost of:
150,000 x $25 = $3,750,000
If the Electronic Division produces 150,000 units of materials at a variable cost of $20 per unit, the total cost would be:
150,000 x $20 = $3,000,000
At a transfer price of $22 per unit, the total revenue from transferring the materials would be:
150,000 x $22 = $3,300,000
Therefore, the total operating income would be:
$3,300,000 - $3,000,000 = $300,000
So Kaufman Manufacturing's total operating income would increase by $300,000.
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b. that employ the most domestic workers.
c. that will increase their foreign exchange rate by the largest amount.
d. for which their consumption taxes are lowest.
Answer: According to the principle of comparative advantage, worldwide output and consumption will be higher when nations specialize in the production of those goods and services "a. they can provide at a lower opportunity costs."
Explanation: The comparative advantage is the ability of a country to produce a good using relatively less resources than another. The theory of comparative advantages says that Each country in question will specialize in what is most efficient. At the same time, it will import the rest of the products in which they are most ineffective in terms of production. Although a country does not have an absolute advantage in producing any good, it may specialize in those goods in which it finds a greater comparative advantage and finally be able to participate in the international market.
Answer:
$1,000
Explanation:
Beginning balance in supplies account = $200
The supplies account is an asset account and ordinarily should have a debit balance. If additional supplies of $1,400 were purchased during the month, it goes into the account as a debit.
If at the end of the month, only $600 of supplies was still on hand total supplies expense
$200 + $1,400 - supplies expense = $600
supplies expense = $200 + $1,400 - $600
= $1,000
The supplies expense is debited when supplies are used and the corresponding credit goes to the supplies account.