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Introduction
Riordan Manufacturing's owns three plants: Albany, GA where plastic bottles are produced; Pontiac, MI where it handles the company's custom plastic fabrication, and Hangzhou, China that currently operates a decentralized unit of the organization producing electric fans. When creating a process design for Riordan's fan production operation, it is important to create a holistic production system that addresses several different aspects of production, including total quality management, material requirements planning (MRP), process design, supply chain considerations such as just-in-time manufacturing and Six Sigma, accurate forecasting methods, and a means of implementing change.
What two accounts will be affected while recording entries in the general ledger when you bill a customer for services rendered on account? There has not been any previous cash paid to the company.
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