The Journal Entry to Record the Allocation of Any Underapplied

question 116

Multiple Choice

The journal entry to record the allocation of any underapplied or overapplied manufacturing overhead for November would include the following:

• A)debit to Finished Goods of $48,830
• B)debit to Finished Goods of $1,200
• C)credit to Finished Goods of $48,830
• D)credit to Finished Goods of $1,200

---

Definitions:

Sales Allowance

A reduction in the selling price of goods, granted by the seller to the customer for partial refund due to minor defects or issues in the sold goods.

Discount Period

The time frame during which a payment can be made at a reduced rate, often related to invoice payments.

Credit Terms

The conditions under which credit will be extended to a customer, including the repayment period and any interest charges.

Merchandise

Goods that a company buys for resale to customers, encompassing a wide range of items sold by retailers.