Reference no: EM132816301

Problem 1: Winkler Inc. sells merchandise on credit to Fox Company. The entry for this transaction will include a

Option 1: credit to Accounts Payable for Winkler Inc.
Option 2: debit to Accounts Receivable for Winkler Inc.
Option 3: debit to Accounts Payable for Fox Company.
Option 4: credit to Accounts Receivable for Fox Company.

Problem 2: When a department or product line is dropped, the common fixed costs that had been allocated to that department

Option 1: are allocated to the remaining departments or product lines.
Option 2: become sunk costs and are not allocated to remaining departments product lines.
Option 3: become mixed costs of the remaining departments or product lines.
Option 4: are treated as opportunity costs of the remaining departments or product lines.