EX 7-23 (Algo) Fill in Blanks; Basic CVP Relationships (LO 7-1, 7-2) Fill in the missing data for each of the following independent cases. (Ignore income taxes.) Note: Do not round intermediate calculations. Leave no cells blank - be certain to enter "0" wherever required. 1. 2. 3. 4. Sales Revenue Variable Expenses 150,000 55,000 $ 83,000 126,000 11,000 Total Contribution Margin 33,000 210,000 Fixed Expenses 66,400 Net Income 160,000 19,300 Break-Even Sales Revenue $ 83,000 150,000
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.
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