Note receivable: Definition, Explanation, Journal entry, and Example
Let’s say that our example company turned over the $2,200 accounts receivable to a collection agency on March 5, 2019 and received only $500 for its value. The difference between $2,200 and $500 of $1,700 is the factoring expense. Interest on a note receivable is calculated by multiplying the principal balance of the note by […]
Continue ReadingNon-manufacturing costs Strategic Cost Management Vocab, Definition, Explanations Fiveable
Manufacturing businesses calculate their overall expenses in terms of the cost of production per item. That number is, of course, critical to setting the wholesale price of the item. Direct labor would include the workers who use the wood, hardware, glue, lacquer, and other materials to build tables. In fact, you already know that labor […]
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