85.6k views
3 votes
At year-end, Marshall Enterprise's Factory Overhead account has a credit balance of $5,000, which is not a material amount. What entry should Marshall make at year-end

1 Answer

1 vote

Answer:

Factory overheads $5,000 - Debit

Cost of goods sold $5,000 - Credit

Step-by-step explanation:

Credit balance of overheads means over-applied overheads. Hence, when it is not material amount, it will be closed in Cost of goods sold account.

Date Accounts title and explanation Debit Credit

Factory Overheads $5,000

Cost of goods sold $5,000

(For closing the overheads credit balance)

User ThunderWiring
by
8.7k points

No related questions found

Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

9.4m questions

12.2m answers

Categories