Horngren's Cost Accounting: A Managerial Emphasis (16th Edition)
16th Edition
ISBN: 9780134475585
Author: Srikant M. Datar, Madhav V. Rajan
Publisher: PEARSON
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Question
Chapter 2, Problem 2.48P
To determine
Cost:
Cost refers to the expenses incurred by the business to earn revenue from sales, in other words cost is the amount given in order to get something.
To identify: The values of A, B, C and D.
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Working It Out
Ann Kerrigan mistakenly recorded the collection of a $1,000 receivable as a debit to Cash and a credit to Service Revenue for $1,000. 1. Prepare the correcting entry. 2. Assume that Kerrigan's net income before the correction was $26,000. How much is her corrected net income?
Required information
[The following information applies to the questions displayed below.]
Fraud Investigators Incorporated operates a fraud detection service.
a. On March 31, 10 customers were billed for detection services totaling $24,000.
b. On October 31, a customer balance of $1,450 from a prior year was determined to be uncollectible and was written off.
c. On December 15, a customer paid an old balance of $790, which had been written off in a prior year.
d. On December 31, $490 of bad debts were estimated and recorded for the year.
2. Complete the following table, indicating the amount and effect (+ for increase,- for decrease, and NE for no effect) of each
transaction. Ignore income taxes.
Transaction Net Receivables Net Sales
a.
b.
C.
d.
Income From
Operations
K. L. Dearborn owns a department store that has a $45,000 balance in Accounts Receivable and a $3,000 credit balance in Allowance for Doubtful
Accounts.
1. Determine the net realizable value of the accounts receivable.
$
2. Assume that an account receivable in the amount of $460 was written off using the allowance method. Determine the net realizable value of the
accounts receivable after the write-off.
4
Chapter 2 Solutions
Horngren's Cost Accounting: A Managerial Emphasis (16th Edition)
Ch. 2 - Define cost object and give three examples.Ch. 2 - Define direct costs and indirect costs.Ch. 2 - Prob. 2.3QCh. 2 - Name three factors that will affect the...Ch. 2 - Define variable cost and fixed cost. Give an...Ch. 2 - What is a cost driver? Give one example.Ch. 2 - What is the relevant range? What role does the...Ch. 2 - Explain why unit costs must often be interpreted...Ch. 2 - Prob. 2.9QCh. 2 - What are three different types of inventory that...
Ch. 2 - Distinguish between inventoriable costs and period...Ch. 2 - Define the following: direct material costs,...Ch. 2 - Describe the overtime-premium and idle-time...Ch. 2 - Define product cost. Describe three different...Ch. 2 - What are three common features of cost accounting...Ch. 2 - Prob. 2.16MCQCh. 2 - Comprehensive Care Nursing Home is required by...Ch. 2 - Frisco Corporation is analyzing its fixed and...Ch. 2 - Year 1 financial data for the ABC Company is as...Ch. 2 - The following information was extracted from the...Ch. 2 - Computing and interpreting manufacturing unit...Ch. 2 - Direct, indirect, fixed, and variable costs....Ch. 2 - Classification of costs, service sector. Market...Ch. 2 - Classification of costs, merchandising sector....Ch. 2 - Classification of costs, manufacturing sector. The...Ch. 2 - Variable costs, fixed costs, total costs. Bridget...Ch. 2 - Variable and Fixed Costs. Consolidated Motors...Ch. 2 - Variable costs, fixed costs, relevant range. Gummy...Ch. 2 - Prob. 2.29ECh. 2 - Cost drivers and functions. The representative...Ch. 2 - Total costs and unit costs, service setting....Ch. 2 - Total and unit cost, decision making. Gayles...Ch. 2 - Inventoriable costs versus period costs. Each of...Ch. 2 - Computing cost of goods purchased and cost of...Ch. 2 - Cost of goods purchased, cost of goods sold, and...Ch. 2 - Flow of Inventoriable Costs. Renkas Heaters...Ch. 2 - Cost of goods manufactured, income statement,...Ch. 2 - Cost of goods manufactured, income statement,...Ch. 2 - Income statement and schedule of cost of goods...Ch. 2 - Interpretation of statements (continuation of...Ch. 2 - Income statement and schedule of cost of goods...Ch. 2 - Terminology, interpretation of statements...Ch. 2 - Labor cost, overtime, and idle time. David...Ch. 2 - Missing records, computing inventory costs. Ron...Ch. 2 - Comprehensive problem on unit costs, product...Ch. 2 - Prob. 2.46PCh. 2 - Cost classification; ethics. Paul Howard, the new...Ch. 2 - Prob. 2.48P
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