On January 1, Davidson Services has the following balances
Accounts Receivable $23,000
Bad Debts Expense $0
Davidson has the following transactions during January: Credit sales of $120,000, collections of credit sales of $84,000, and write-offs of $18,000. Davidson uses the direct write-off method. The amount of Bad Debts Expense for January is ________.
A) $23,000
B) $25,714
C) $12,600
D) $18,000
D
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An adjusting entry would not include which of the following accounts?
A) Salaries Payable B) Unearned Revenue C) Interest Receivable D) Cash
Which of the following statements about standards is False?
a. The difference between actual quantity, price or rate and its related standard is called a fluctuation. b. The quantity variances show how much money the company lost (or saved) because the used a different amount of material than they planned to use. c. The rate variance shows how much money the company lost (or saved) because they paid the employees a different amount per hour than they planned to pay. d. Choices b and c are both true.
In DBR (drum-buffer-rope), which of the following is referred to as the drum?
A. scarce resources B. inventory C. raw materials D. work stations
Income under absorption costing will always be different than income under variable costing.
Answer the following statement true (T) or false (F)