Pepper Department Store Allocates Its Service Department Expenses to Its

question 40

Multiple Choice

Pepper Department store allocates its service department expenses to its various operating (sales) departments.The following data is available for its service departments: The following information is available for its three operating (sales) departments: What is the total expense allocated to Department B?

• A)$29,375.
• B)$30,462.
• C)$30,500.
• D)$30,775.
• E)$32,160.

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Definitions:

Business Transactions

Economic events that are recorded in the financial statements of an entity because they affect the financial position of the company, involving the transfer of value between two or more parties.

Journal

A chronological record of all financial transactions, used to transfer information to a company's ledger.

Ledger

A book or collection of financial accounts of a particular type, often referred to as the final book of entry where transactions are summarized.

Trial Balance

A trial balance is a bookkeeping report that lists the balances in each of an organization's general ledger accounts to check the mathematical accuracy of the accounting entries.