The direct write-off method of accounting for bad debts records the loss from an uncollectible account receivable when it is determined to be uncollectible.
Answer the following statement true (T) or false (F)
True
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A major disadvantage of the observation method of analyzing cost behavior is:
a. It bases its solution on only two observations. b. It results in its analyzed cost being treated as either fixed or variable, based on which type of behavior it more closely resembles. c. Two persons could draw different lines through the data points. d. It enables non-representative points, called outliers, to be identified.
Use ________ to set off the word sic, which indicates "as written" in a quotation
A) parentheses B) brackets C) commas
Minstrel Manufacturing uses a job order costing system. During one month, Minstrel purchased $198,000 of raw materials on credit; issued materials to production of $195,000 of which $30,000 were indirect. Minstrel incurred a factory payroll of $150,000, of which $40,000 was indirect labor. Minstrel uses a predetermined overhead rate of 150% of direct labor cost. The journal entry to record the issuance of materials to production is:
A. Debit Raw Materials Inventory $195,000; credit Accounts Payable $195,000. B. Debit Work in Process Inventory $195,000; credit Raw Materials Inventory $195,000. C. Debit Raw Materials Inventory $195,000; credit Work in Process Inventory $195,000. D. Debit Finished Goods Inventory $195,000; credit Raw Materials Inventory $195,000. E. Debit Work in Process Inventory $165,000; debit Factory Overhead $30,000; credit Raw Materials Inventory $195,000.
Which of the following offers are considered to be irrevocable for a given period?
a. Firm offers. b. Option contracts. c. A writing signed by a merchant offering to hold open an offer for the sale of goods for a stated period. d. All of the above.