26. Reynardo Company incurred $90,000 of depreciation for the year. Eighty percent relates to the firm's production facilities, and 20% relates to sales and administrative offices. If all items are handled in the proper manner, a review of the company's accounting records should reveal a: A. credit to Depreciation Expense for $90,000. B. debit to Manufacturing Overhead for $90,000. C. debit to Manufacturing Overhead for $72,000. D. debit to Work-in-Process Inventory for $18,000. E. credit to Cash for $90,000.
26. Reynardo Company incurred $90,000 of depreciation for the year. Eighty percent relates to the firm's production facilities, and 20% relates to sales and administrative offices. If all items are handled in the proper manner, a review of the company's accounting records should reveal a: A. credit to Depreciation Expense for $90,000. B. debit to Manufacturing Overhead for $90,000. C. debit to Manufacturing Overhead for $72,000. D. debit to Work-in-Process Inventory for $18,000. E. credit to Cash for $90,000.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:26. Reynardo Company incurred $90,000 of depreciation for the year. Eighty percent relates to the firm's
production facilities, and 20% relates to sales and administrative offices. If all items are handled in the proper
manner, a review of the company's accounting records should reveal a:
A. credit to Depreciation Expense for $90,000.
B. debit to Manufacturing Overhead for $90,000.
C. debit to Manufacturing Overhead for $72,000.
D. debit to Work-in-Process Inventory for $18,000.
E. credit to Cash for $90,000.
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