Aardvark Company sells merchandise only on credit. For the year ended December 31, 2018, the following data are available:

Determine the balance of Accounts Receivable at December 31, 2018.

Assume that the company estimates bad debts at 2% of credit sales. What amount will the company record as bad debt expense for 2018?

What is the net realizable value of the receivables to be reported on the balance sheet at year-end (assuming % of credit sales method was used by Aardvark)?

Assume instead the company estimates the allowance for doubtful accounts based on the aging of receivables method. Estimate the allowance for doubtful accounts at December 31, 2018 using the information provided below:

AGE CLASS                     % UNCOLLECTIBLE              AMOUNT

Not Past Due                     1%                                           $200,000                     

1-30 Days Past Due           5%                                           $100,000

31-60 Days Past Due         10%                                         $40,000                       

61-90 Days Past Due         25%                                         $20,000

Over 90 Days Past Due     50%                                         $5,000

Case Development began operations in December 2018. When property is sold on an installment basis, Case recognizes installment income for financial reporting purposes in the year of the sale. For tax purposes, installment income is reported by the installment method. 2018 installment income was $680,000 and will be collected over the next three years. Scheduled collections and enacted tax rates for 2019–2021 are as follows:

Case also had product warranty costs of $88,000 expensed for financial reporting purposes in 2018. For tax purposes, only the $24,000 of warranty costs actually paid in 2018 was deducted. The remaining $64,000 will be deducted for tax purposes when paid over the next three years as follows:

Pretax accounting income for 2018 was $930,000, which includes interest revenue of $18,000 from municipal bonds. The enacted tax rate for 2018 is 30%.

Required:
1. Assuming no differences between accounting income and taxable income other than those described above, prepare the appropriate journal entry to record Case’s 2018 income taxes.
2. What is Case’s 2018 net income?

On August 1, 2018, McLaren Inc. sold inventory to Klondike Company and received Klondike’s 9-month, noninterestbearing $100,000 note due April 30, 2019. The cost of the inventory was $60,000. The discount rate was 8%. McLaren records adjusting entries annually at December 31.

a. Record the August 1, 2018, journal entry for McLaren.

b. If McLaren recorded the note as an interest-bearing note on August 1, 2018, (i.e., did not record a discount on the note), how would the financial statements be misstated (overstated/understated and $ amount)?. (Hint: Record the entry without the discount and compare to your answer in part a.)

            ASSETS                       LIABILITIES                   SE                                2018 NET INCOME

            $                                  $                                  $                                  $

            Overstated                    Overstated                    Overstated                    Overstated

            Understated                  Understated                  Understated                  Understated

c. Record the December 31, 2018, adjusting entry for McLaren.

d. If McLaren’ 2018 net income without including the Aug. 1 sale or December 31 adjusting entry was $200,000, what is the correct 2018 net income? Ignore taxes.

e. What amounts related to the note will McLaren report on its 2018 balance sheet?

f. Record the April 30, 2019, journal entry(ies) for McLaren.

Case Development began operations in December 2018. When property is sold on an installment basis, Case recognizes installment income for financial reporting purposes in the year of the sale. For tax purposes, installment income is reported by the installment method. 2018 installment income was $620,000 and will be collected over the next three years. Scheduled collections and enacted tax rates for 2019–2021 are as follows:

Case also had product warranty costs of $82,000 expensed for financial reporting purposes in 2018. For tax purposes, only the $21,000 of warranty costs actually paid in 2018 was deducted. The remaining $61,000 will be deducted for tax purposes when paid over the next three years as follows:

Pretax accounting income for 2018 was $840,000, which includes interest revenue of $12,000 from municipal bonds. The enacted tax rate for 2018 is 30%.

Required:
1. Assuming no differences between accounting income and taxable income other than those described above, prepare the appropriate journal entry to record Case’s 2018 income taxes.
2. What is Case’s 2018 net income?

Case Development began operations in December 2018. When property is sold on an installment basis, Case recognizes installment income for financial reporting purposes in the year of the sale. For tax purposes, installment income is reported by the installment method. 2018 installment income was $770,000 and will be collected over the next three years. Scheduled collections and enacted tax rates for 2019–2021 are as follows:

Case also had product warranty costs of $97,000 expensed for financial reporting purposes in 2018. For tax purposes, only the $28,500 of warranty costs actually paid in 2018 was deducted. The remaining $68,500 will be deducted for tax purposes when paid over the next three years as follows:

Pretax accounting income for 2018 was $1,065,000, which includes interest revenue of $27,000 from municipal bonds. The enacted tax rate for 2018 is 30%.

Required:
1. Assuming no differences between accounting income and taxable income other than those described above, prepare the appropriate journal entry to record Case’s 2018 income taxes.
2. What is Case’s 2018 net income?

Case Development began operations in December 2018. When property is sold on an installment basis, Case recognizes installment income for financial reporting purposes in the year of the sale. For tax purposes, installment income is reported by the installment method. 2018 installment income was $690,000 and will be collected over the next three years. Scheduled collections and enacted tax rates for 2019–2021 are as follows:

Case also had product warranty costs of $89,000 expensed for financial reporting purposes in 2018. For tax purposes, only the $24,500 of warranty costs actually paid in 2018 was deducted. The remaining $64,500 will be deducted for tax purposes when paid over the next three years as follows:

Pretax accounting income for 2018 was $945,000, which includes interest revenue of $19,000 from municipal bonds. The enacted tax rate for 2018 is 30%.

Required:
1. Assuming no differences between accounting income and taxable income other than those described above, prepare the appropriate journal entry to record Case’s 2018 income taxes.
2. What is Case’s 2018 net income?
  

calculate the​ price/earnings ratio for 2018 and 2017

​(Round interim calculations to the nearest​ cent, $X.XX and your answers to two decimal​ places, X.XX.)

calculate the dividend yield on common stock for

2018 and 2017.

​(Round interim calculations to the nearest​ cent, $X.XX, and your final answers to one tenth of a​ percent, X.X%.)

calculate the dividend payout for

2018 and 2017

​(Round interim calculations to the nearest​ cent, $X.XX, and your final answers to the nearest whole​ percent, X%.)

Determine whether the common stock has increased or decreased in attractiveness during the past year.

The​ stock's attractiveness during 2018 as shown by the increase or decrease

in the​ price/earnings ratio. If an investor is looking at the stock for dividend​ potential, then the stock is less attractive or more attractive

than last​ year; both the dividend yield and the dividend payout decreased or increased

.

Halifax Manufacturing allows its customers to return merchandise for any reason up to 90 days after delivery and receive a credit to their accounts. All of Halifax's sales are for credit (no cash is collected at the time of sale). The company began 2018 with a refund liability of $390,000. During 2018, Halifax sold merchandise on account for $12,400,000. Halifax's merchandise costs it 65% of merchandise selling price. Also during the year, customers returned $368,000 in sales for credit, with $203,000 of those being returns of merchandise sold prior to 2018, and the rest being merchandise sold during 2018. Sales returns, estimated to be 3% of sales, are recorded as an adjusting entry at the end of the year.

Required:

1. Prepare entries to (a) record actual returns in 2018 of merchandise that was sold prior to 2018; (b) record actual returns in 2018 of merchandise that was sold during 2018; and (c) adjust the refund liability to its appropriate balance at year end.
2. What is the amount of the year-end refund liability after the adjusting entry is recorded?

I am getting everything besides part C. My math comes out to 4,000 for the difference in estimated and actual but mcgraw hill is saying this is incorrect.

A manager in an insurance claims operation needed to estimate the time required, on average, to process a claim from the time a customer first contacted the insurance company until a check was issued or, otherwise, the claim was rejected. The company’s computer systems did not track such information, but it could be determined from the computer database that an average of 55,000 claims was processed per year and the average number of claims in process at any one time was 2,500. How long, on average does it take to process a claim?