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Question - If the auditor concludes the allowance for doubtful accounts should be between $130,000 and $160,000 and management's recorded amount is $170,000, what amount would be treated as a misstatement?
a. $40,000 (the maximum difference)
b. $0 (no misstatement as management has estimated higher than the auditor)
c. $10,000 (the minimum difference)
d. $25,000 (the mid-range of $145,000 less $170,000)
Calculate the equivalent units for conversion costs, Calculate the cost per equivalent unit for conversion costs
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A sporting goods store with sales for the year of $400,000 and other income of $ 32,000 has operating expenses of $132,000. Its cost of goods sold is $207,000. What are the gross margin, operating profit and net profit in dollars?
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