The Journal Entry to Write-Off an Insignificant Underapplied Overhead Balance

question 54

Multiple Choice

The journal entry to write-off an insignificant underapplied overhead balance at the end of an accounting period is:

• A)a.
• B)B.
• C)C.
• D)D.The most conservative method is to write-off the immaterial amount directly to Cost of Goods SolD.

---

Definitions:

Automotive Parts

Components and replacements parts specifically designed for use in motor vehicles, including both original equipment (OEM) and aftermarket parts.

Journal Entries

Entries made in the bookkeeping system of a business to record financial transactions, including details of debits and credits involved.

Gourmet Foods

High-quality or exotic ingredients and prepared foods that are often more costly and sought after for their unique flavors and presentation.

Merchandisers

Merchandisers are businesses or individuals that purchase goods for the purpose of selling them to consumers at a profit.