Using the Chef's Magic Circle, Complete the Following

question 55

Short Answer

Using the Chef's Magic Circle, complete the following. Round percent answers to the nearest hundredth and money answers to the nearest cent. Sales Price: $18,888 Food Cost: $11,300 Food Cost Percent: _______________%

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Definitions:

Direct Write-Off Method

A method of accounting for bad debts that writes off an outstanding account receivable as a bad debt expense only when it becomes evident the debt is uncollectible.

Reinstatement

The process of restoring a previous condition or position, such as reinstating a lapsed insurance policy or an employee's job position.

Receipt of Cash

The process of receiving cash as a form of payment, often recorded during accounting transactions.

Accounts Receivable Turnover

A financial metric that measures how efficiently a company collects revenue from its credit customers, calculated as sales divided by the average accounts receivable.