In the earlier article, we have dealt with the importance of making the correct pricing decisions and the factors to consider before making a pricing decision. This article refers to the various methods of pricing which include the following: Full Cost Plus pricing; Variable/Marginal Cost Plus pricing Rate of Return Pricing; Break-even Pricing; MINIMUM PRICING; … Read more
In the earlier article, we have dealt with the importance of making the correct pricing decisions and the factors to consider before making a pricing decision. This article refers to the various methods of pricing which include the following: Full Cost Plus pricing; Variable/Marginal Cost Plus pricing Rate of Return Pricing; Break-even Pricing; Minimum Pricing; … Read more
In the earlier article, we have dealt with the importance of making the correct pricing decisions and the factors to consider before making a pricing decision. This article refers to the various methods of pricing which include the following: Full Cost Plus pricing; Variable/Marginal Cost Plus pricing Rate of Return Pricing; Break-even Pricing; Minimum Pricing; … Read more
In the earlier article, we have dealt with the importance of making the correct pricing decisions and the factors to consider before making a pricing decision. This article refers to the various methods of pricing which include the following: Full Cost Plus pricing; Variable or Marginal Cost Plus pricing Rate of Return Pricing; Break-even Pricing; … Read more
In the earlier article, we have dealt with the importance of making the correct pricing decisions and the factors to consider before making a pricing decision. This article refers to the various methods of pricing which include the following: FULL COST PLUS pricing; Variable/Marginal Cost Plus pricing Rate of Return Pricing; Break-even Pricing; Minimum Pricing; … Read more
Pricing which is part of the overall marketing strategy plays a very critical role in the success of a company as it is able to increase the profitability and or increase the market share. Normally, the higher the prices means higher profit being attained but might means lower market share. Pricing ties very closely with … Read more
Answer to Question BD Test No 2(a): To record monthly bad debt expenses accrual summary. Debit: Bad debt expense (2% x $4,200,000) $84,000 Credit: Allowance for uncollectible accounts $84,000 To record year 2005 accounts receivable write offs. Debit : Allowance for uncollectible accounts $90,000 Credit: Accounts receivable $90,000 Answer to Question BD No 2(b): … Read more
Question No BD 2: Company XYZ uses the allowance method for its uncollectible accounts receivable. During the year, a monthly bad debt accrual is made by applying 2% times the amount of credit sales for the month. At the year end Dec 31st, an ageing of accounts receivable is prepared and the allowance for uncollectible … Read more
Answer to Question No BD 1(a): Being write off of accounts receivables. Debit : Allowance for uncollectible accounts $64,000 Credit: Accounts receivable $64,000 Being bad debt expense for the year. Debit : Bad Debt Expense $46,000 Credit: Allowance for uncollectible accounts $46,000 Computation of bad debt expense for the year: Allowance for uncollectible accounts b/f … Read more
Question No BD 1: Company XYZ offers credit terms to its customers. At 31/12/2005, accounts receivable totaled $2,500,000. The allowance method is used to account for uncollectible accounts. At the beginning of the year, the allowance for uncollectible accounts had a credit balance of $68,000. $64,000 Accounts receivable written off during the year. No previously … Read more