The following annual amounts pertain to the wolf company:
estimated overhead costs $ 101,988
estimated direct labor hours 67,992
if actual overhead costs for the year amounted to $106,000 and actual direct labor worked amounted to 70,000 hours, the year-end adjustment necessary to close the manufacturing overhead account would
a. decrease the amount of cost of goods sold .
b. not affect the amount of cost of goods sold.
c. increase the amount of cost of goods sold.
d. there would be no adjusting entry at the end of the accounting period.

The manda panda company uses the allowance method to account for bad debts. at the beginning of 2018, the allowance account had a credit balance of $92,400. credit sales for 2018 totaled $3,190,000 and the year-end accounts receivable balance was $507,500. during this year, $88,500 in receivables were determined to be uncollectible. manda panda anticipates that 3% of all credit sales will ultimately become uncollectible. the fiscal year ends on december 31. required: 1. does this situation describe a loss contingency? 2. what is the bad debt expense that manda panda should report in its 2018 income statement? 3. prepare the appropriate journal entry to record the contingency. 4. complete the table below to calculate the net realizable value manda panda should report in its 2018 balance sheet?