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Bad debts are apportioned among departments in the proportion of:

(A) Sales of each department

(B) Number of units sold by each department

(C) Cost of sales of each department

(D) None of the above

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Question added by Shamseer KM , Accounts and Admin Payroll , KBM Group
Date Posted: 2015/03/27
VENKITARAMAN KRISHNA MOORTHY VRINDAVAN
by VENKITARAMAN KRISHNA MOORTHY VRINDAVAN , Project Execution Manager & Accounts Manager , ALI INTERNATIONAL TRADING EST.

Nature of expense: Selling and distribution

it need be apportioned on the basis of Sales Value of each department.

Answer option: A.

 

George Karaparambil
by George Karaparambil , Manager, Financial Analysis , Kerala Ayurveda Ltd, KATRA GROUP

Bad debts are apportioned based on Sales of each department

Muhammad Sabith
by Muhammad Sabith , Accountant , SIMORA

Answer _ (A) Sales of each department

Mohammed Shahid Ullah
by Mohammed Shahid Ullah , Executive Director (Finance) , Coal Power Generation Company Bangladesh Limited

Bad debts are not apportioned among the sales department or cost of sales. It will apportioned who will responsible for that sales.

samin sunny
by samin sunny , Senior Finance & Accounts Officer , Fish Farm LLC

the answer is A,sales of each department. 

Shamseer KM
by Shamseer KM , Accounts and Admin Payroll , KBM Group

The Correct answer is  >>>  Option A- Sale of Each Department... 

Atif Rahman
by Atif Rahman , Subject matter expert , EXL Services Pvt. Ltd.

Bad Debt are the Part of selling and distribution overhead. there For :

Sales of each department

Muhammad Ramzan Tufail  ACCA
by Muhammad Ramzan Tufail ACCA , Assistant Finance Manager , Eltizam Asset Management Group

Bad Debts are relating to Sales, so it should be apportioned on the Sales value of each departments..

 

Thank you..

Kamran Fasih
by Kamran Fasih , Sr. Accountant , Trans Universal Trading

Answer is (D) none of the above, Bad debts should not charged to production department.

Darshan Shah
by Darshan Shah , Executive Finance , WHITEHAT EDUCATION PRIVATE LIMITED

on the bases of number of units sold by each department bad debts are apportioned

Mark Angelo Damuag
by Mark Angelo Damuag , Financial Analyst , Evacare Management Consultancy Inc

The answer is (D) None of the above. Bad debts is expense and not apportioned to any departments.

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