14.07.2022 - 08:06

# Bayo Clothing Store shows the following data for a calendar year: Accounts receivable, beginning: P100,000 Allowance for doubtful accounts, beginning: 10,000 Credit sales during the year: 500,000 Collections: 525,000 Accounts written-off: 5,000 How much i

Question:

Bayo Clothing Store shows the following data for a calendar year:

Accounts receivable, beginning: P100,000

Allowance for doubtful accounts, beginning: 10,000

Credit sales during the year: 500,000

Collections: 525,000

Accounts written-off: 5,000

How much is the doubtful accounts expense during the year?

a. P10,000

b. P7000

c. P5000

d. P2000

The total revenue generated from the sale of 379 swim trunks would be found by multiplying the average selling price ($86.73) by the number of units sold (379). Total revenue =$86.73 x 379 = $32,876.67 The total variable costs associated with producing and selling 379 swim trunks would be found by multiplying the variable cost per unit ($26.63) by the number of units sold (379). Total variable costs = $26.63 x 379 =$10,089.77 The total fixed costs would remain the same, at $10,110. To find the operating profit or loss, we subtract the total variable costs and fixed costs from the total revenue. Operating profit = Total revenue - Total variable costs - Fixed costs Operating profit =$32,876.67 - $10,089.77 -$10,110 Operating profit = $12,676.90 Therefore, the operating profit associated with the production and sale of 379 swim trunks would be$12,676.90.