An air-conditioning contractor is installing a heat pump system in a privatehome. He has agreed to do the job for the cost of parts and labor plus acontractor’s fee of 9% of the total. The heat pump costs $1,495, the electricalsupplies $53, the ducting $81, and the other supplies $39. Three men work16 hours each to install the system. They are paid $14 per hour. Sales tax is6% of the subtotal of the cost for parts, labor, and contractor’s fee.a. What is the total cost for parts and labor?
Bad Debts
At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
An air-conditioning contractor is installing a heat pump system in a private
home. He has agreed to do the job for the cost of parts and labor plus a
contractor’s fee of 9% of the total. The heat pump costs $1,495, the electrical
supplies $53, the ducting $81, and the other supplies $39. Three men work
16 hours each to install the system. They are paid $14 per hour. Sales tax is
6% of the subtotal of the cost for parts, labor, and contractor’s fee.
a. What is the total cost for parts and labor?
Step by step
Solved in 2 steps with 2 images
