Refer to Part (C)

question 120

Essay

Refer to part (c). Assume that $2,000 of the amount written off was subsequently collected on October 28, 2021. Prepare the required entry(ies) on October 28, 2021.

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Definitions:

Direct Labour

The amount of effort contributed by employees who work directly on manufacturing a product or delivering a service.

Factory Overhead

Indirect costs associated with manufacturing, including costs of utilities, maintenance, and factory equipment depreciation.

Variable Expenses

Costs that change in proportion to business activity or output levels, such as materials costs and utility expenses directly linked to production.

Fixed Expenses

Fixed expenses are consistent costs that do not vary with the volume of business activity, such as rent or salaries.