Fast Turnstiles Co. is evaluating the extension of credit to a
new group of customers. Although these customers will provide
$216,000 in additional credit sales, 14 percent are likely to be
uncollectible. The company will also incur $16,400 in additional
collection expense. Production and marketing costs represent 72
percent of sales. The firm is in a 20 percent tax bracket and has a
receivables turnover of five times. No other asset buildup will be
required to service the new customers. The firm has a 8 percent
desired return.
b-2. Calculate the return on incremental
investment if 17 percent of the new sales prove to be
uncollectible. (Input your answer as a percent rounded to 2
decimal places.)
b-3. Should credit be extended if 17 percent of
the new sales prove uncollectible?
| Yes | |
| No |
c-1. Calculate the return on incremental
investment if the receivables turnover drops to 1.6, and 14 percent
of the accounts are uncollectible. (Input your answer as a
percent rounded to 2 decimal places.)
c-2. Should credit be extended if the receivables
turnover drops to 1.6, and 14 percent of the accounts are
uncollectible?
| No | |
| Yes |
In: Accounting
Write a summary of your understanding of the following Quality Concepts (one half page for each concept):
(1) Leadership,
(2) Customers Satisfaction,
(3) Customers Delight,
(4) Employee Involvement
In: Operations Management
Sales-Related Transactions Using Perpetual Inventory System
The following selected transactions were completed by Green Lawn Supplies Co., which sells irrigation supplies primarily to other businesses and occasionally to retail customers:
| July 1. | Sold merchandise on account to Landscapes Co., $59,820, terms FOB shipping point, n/eom. The cost of the goods sold was $33,100. |
| 2. | Sold merchandise for $12,450 plus 6% sales tax to retail cash customers. The cost of the goods sold was $7,140. |
| 5. | Sold merchandise on account to Peacock Company, $17,500, terms FOB destination, 1/10, n/30. The cost of the goods sold was $12,280. |
| 8. | Sold merchandise for $29,100 plus 6% sales tax to retail customers who used VISA cards. The cost of the goods sold was $18,230. |
| 13. | Sold merchandise to customers who used MasterCard cards, $13,030. The cost of the goods sold was $7,800. |
| 14. | Sold merchandise on account to Loeb Co., $29,200, terms FOB shipping point, 1/10, n/30. The cost of the goods sold was $15,060. |
| 15. | Received check for amount due from Peacock Company for sale on July 5. |
| 16. | Issued credit memo to Loeb Co. for merchandise with an invoice amount of $4,300 returned from the sale on July 14. The cost of the merchandise returned was $2,630. |
| 18. | Sold merchandise on account to Jennings Company, $9,000, terms FOB shipping point, 2/10, n/30. Paid $60 for freight and added it to the invoice. The cost of the goods sold was $5,250. |
| 24. | Received check for amount due from Loeb Co. for sale on July 14 less credit memo of July 16. |
| 28. | Received check for amount due from Jennings Company for sale of July 18. |
| 31. | Paid Black Lab Delivery Service $5,530 for merchandise delivered during July to customers under shipping terms of FOB destination. |
| 31. | Received check for amount due from Landscapes Co. for sale of July 1. |
| Aug. 3. | Paid Hays Federal Bank $800 for service fees for handling MasterCard and VISA sales during July. |
| 10. | Paid $6,463 to state sales tax division for taxes owed on sales. |
Required:
Journalize the entries to record the transactions of Green Lawn Supplies Co. If an amount box does not require an entry, leave it blank.
In: Accounting
Sales-Related Transactions Using Perpetual Inventory System
The following selected transactions were completed by Green Lawn Supplies Co., which sells irrigation supplies primarily to wholesalers and occasionally to retail customers:
| July 1. | Sold merchandise on account to Landscapes Co., $15,200, terms FOB shipping point, n/eom. The cost of merchandise sold was $9,100. |
| 2. | Sold merchandise for $21,700 plus 6% sales tax to retail cash customers. The cost of merchandise sold was $14,100. |
| 5. | Sold merchandise on account to Peacock Company, $37,700, terms FOB destination, 1/10, n/30. The cost of merchandise sold was $24,500. |
| 8. | Sold merchandise for $8,000 plus 5% sales tax to retail customers who used VISA cards. The cost of merchandise sold was $4,800. |
| 13. | Sold merchandise to customers who used MasterCard cards, $6,000. The cost of merchandise sold was $3,800. |
| 14. | Sold merchandise on account to Loeb Co., $11,300, terms FOB shipping point, 1/10, n/30. The cost of merchandise sold was $6,700. |
| 15. | Received check for amount due from Peacock Company for sale on July 5. |
| 16. | Issued credit memo for $1,700 to Loeb Co. for merchandise returned from sale on July 14. The cost of the merchandise returned was $1,000. |
| 18. | Sold merchandise on account to Jennings Company, $5,800, terms FOB shipping point, 2/10, n/30. Paid $260 for freight and added it to the invoice. The cost of merchandise sold was $3,500. |
| 24. | Received check for amount due from Loeb Co. for sale on July 14 less credit memo of July 16. |
| 28. | Received check for amount due from Jennings Company for sale of July 18. |
| 31. | Paid Black Lab Delivery Service $1,600 for merchandise delivered during July to customers under shipping terms of FOB destination. |
| 31. | Received check for amount due from Landscapes Co. for sale of July 1. |
| Aug. 3. | Paid Hays Federal Bank $1,070 for service fees for handling MasterCard and VISA sales during July |
| 10. | Paid $1,960 to state sales tax division for taxes owed on sales. |
Required:
Journalize the entries to record the transactions of Green Lawn Supplies Co. For a compound transaction, if no entry is required, leave the entry box blank.
In: Accounting
Sales-Related Transactions Using Perpetual Inventory System
The following selected transactions were completed by Green Lawn Supplies Co., which sells irrigation supplies primarily to wholesalers and occasionally to retail customers:
| July 1. | Sold merchandise on account to Landscapes Co., $12,300, terms FOB shipping point, n/eom. The cost of merchandise sold was $7,400. |
| 2. | Sold merchandise for $27,800 plus 6% sales tax to retail cash customers. The cost of merchandise sold was $18,100. |
| 5. | Sold merchandise on account to Peacock Company, $36,000, terms FOB destination, 1/10, n/30. The cost of merchandise sold was $23,400. |
| 8. | Sold merchandise for $12,100 plus 5% sales tax to retail customers who used VISA cards. The cost of merchandise sold was $7,300. |
| 13. | Sold merchandise to customers who used MasterCard cards, $7,000. The cost of merchandise sold was $4,400. |
| 14. | Sold merchandise on account to Loeb Co., $14,600, terms FOB shipping point, 1/10, n/30. The cost of merchandise sold was $8,600. |
| 15. | Received check for amount due from Peacock Company for sale on July 5. |
| 16. | Issued credit memo for $2,200 to Loeb Co. for merchandise returned from sale on July 14. The cost of the merchandise returned was $1,200. |
| 18. | Sold merchandise on account to Jennings Company, $7,400, terms FOB shipping point, 2/10, n/30. Paid $220 for freight and added it to the invoice. The cost of merchandise sold was $4,400. |
| 24. | Received check for amount due from Loeb Co. for sale on July 14 less credit memo of July 16. |
| 28. | Received check for amount due from Jennings Company for sale of July 18. |
| 31. | Paid Black Lab Delivery Service $1,610 for merchandise delivered during July to customers under shipping terms of FOB destination. |
| 31. | Received check for amount due from Landscapes Co. for sale of July 1. |
| Aug. 3. | Paid Hays Federal Bank $960 for service fees for handling MasterCard and VISA sales during July |
| 10. |
Paid $2,610 to state sales tax division for taxes owed on sales. |
Required:
Journalize the entries to record the transactions of Green Lawn Supplies Co. For a compound transaction, if no entry is required, leave the entry box blank.
In: Accounting
The following selected transactions were completed by Green Lawn Supplies Co., which sells irrigation supplies primarily to wholesalers and occasionally to retail customers:
| July 1. | Sold merchandise on account to Landscapes Co., $12,900, terms FOB shipping point, n/eom. The cost of merchandise sold was $7,700. |
| 2. | Sold merchandise for $20,300 plus 5% sales tax to retail cash customers. The cost of merchandise sold was $13,200. |
| 5. | Sold merchandise on account to Peacock Company, $35,600, terms FOB destination, 1/10, n/30. The cost of merchandise sold was $23,100. |
| 8. | Sold merchandise for $10,500 plus 8% sales tax to retail customers who used VISA cards. The cost of merchandise sold was $6,300. |
| 13. | Sold merchandise to customers who used MasterCard cards, $9,000. The cost of merchandise sold was $5,700. |
| 14. | Sold merchandise on account to Loeb Co., $13,400, terms FOB shipping point, 1/10, n/30. The cost of merchandise sold was $7,900. |
| 15. | Received check for amount due from Peacock Company for sale on July 5. |
| 16. | Issued credit memo for $2,000 to Loeb Co. for merchandise returned from sale on July 14. The cost of the merchandise returned was $1,100. |
| 18. | Sold merchandise on account to Jennings Company, $5,900, terms FOB shipping point, 2/10, n/30. Paid $270 for freight and added it to the invoice. The cost of merchandise sold was $3,500. |
| 24. | Received check for amount due from Loeb Co. for sale on July 14 less credit memo of July 16. |
| 28. | Received check for amount due from Jennings Company for sale of July 18. |
| 31. | Paid Black Lab Delivery Service $1,810 for merchandise delivered during July to customers under shipping terms of FOB destination. |
| 31. | Received check for amount due from Landscapes Co. for sale of July 1. |
| Aug. 3. | Paid Hays Federal Bank $1,100 for service fees for handling MasterCard and VISA sales during July |
| 10. | Paid $2,130 to state sales tax division for taxes owed on sales. |
Required:
Journalize the entries to record the transactions of Green Lawn Supplies Co. For a compound transaction, if no entry is required, leave the entry box blank.
In: Accounting
Sales-Related Transactions Using Perpetual Inventory System
The following selected transactions were completed by Green Lawn Supplies Co., which sells irrigation supplies primarily to wholesalers and occasionally to retail customers:
| July 1. | Sold merchandise on account to Landscapes Co., $14,300, terms FOB shipping point, n/eom. The cost of merchandise sold was $8,600. |
| 2. | Sold merchandise for $20,500 plus 6% sales tax to retail cash customers. The cost of merchandise sold was $13,300. |
| 5. | Sold merchandise on account to Peacock Company, $35,100, terms FOB destination, 1/10, n/30. The cost of merchandise sold was $22,800. |
| 8. | Sold merchandise for $12,400 plus 7% sales tax to retail customers who used VISA cards. The cost of merchandise sold was $7,400. |
| 13. | Sold merchandise to customers who used MasterCard cards, $5,500. The cost of merchandise sold was $3,500. |
| 14. | Sold merchandise on account to Loeb Co., $11,700, terms FOB shipping point, 1/10, n/30. The cost of merchandise sold was $6,900. |
| 15. | Received check for amount due from Peacock Company for sale on July 5. |
| 16. | Issued credit memo for $1,800 to Loeb Co. for merchandise returned from sale on July 14. The cost of the merchandise returned was $1,000. |
| 18. | Sold merchandise on account to Jennings Company, $6,300, terms FOB shipping point, 2/10, n/30. Paid $230 for freight and added it to the invoice. The cost of merchandise sold was $3,800. |
| 24. | Received check for amount due from Loeb Co. for sale on July 14 less credit memo of July 16. |
| 28. | Received check for amount due from Jennings Company for sale of July 18. |
| 31. | Paid Black Lab Delivery Service $1,900 for merchandise delivered during July to customers under shipping terms of FOB destination. |
| 31. | Received check for amount due from Landscapes Co. for sale of July 1. |
| Aug. 3. | Paid Hays Federal Bank $1,100 for service fees for handling MasterCard and VISA sales during July |
| 10. | Paid $2,410 to state sales tax division for taxes owed on sales. |
Required:
Journalize the entries to record the transactions of Green Lawn Supplies Co. For a compound transaction, if no entry is required, leave the entry box blank.
In: Accounting
Read the statements issued by the PCAOB and SEC on May 16, 2005, and briefly describe the apparent underlying cause(s) for the auditors' failures in applying the concept of reasonable assurance. Pay special attention to the portion of the PCAOB's policy statement entitled "The Importance of Professional Judgment."
In: Accounting
Main causes behind industrialisation” according to Allen, 2011; North, 1991; Pomeranz, 2000; Acemoglu et at 2005 articles. Explain the most important factors that led to industrialization. discussing institutions and the great divergence; what was the role of institutions for explaining the great divergence?
In: Operations Management
On January 1, 2005, a person’s savings account was worth $250,000. Every month thereafter, this person makes a cash contribution of $750 to the account. If the fund is expected to be worth $500,000 on January 1, 2010, what annual rate of interest is being earned on this fund?
In: Finance