On January 1, 2018, the Stridewell Wholesale Shoe Company hired Sammy Sossa. Sammy is expected to work for 25 years before retirement on December 31, 2042. Annual retirement payments will be paid at the end of each year during his retire ment period, expected to be 20 years. The first payment will be on December 31, 2043 . During 2018 Sammy earned an annual retirement benefit estimated to be $2,500 per year. The company plans to contribute cash to a pension fund that will accumulate to an amount suffic ient to pay Sammy this benefit. Assuming that Stri dewell anticipates earning 6% on all funds invested in the pension plan, how much would the company have to contribute in 2018 to pay for pension benefits earned in 2018?

Jane is a newborn. Her parents are planning to contribute $4,000 a year (or possibly less) towards her college fund into an account that will grow at a constant rate of 4.5% a year. Both parents work for the same company that offered to match parental contributions dollar for dollar for the first 5 parental deposits and 30 cents for every parental dollar for subsequent parental deposits, until Jane reaches 19. Once she reaches 19, both the company and parents stop their contributions. College costs are expected to be $40,000 a year and Jane spends 4 years in college once she reaches 19. Assume that the beginning balance on the account is $25,000 What is the smallest amount parents should contribute each year to make Jane's college affordable?

I am working on an accounting project related to a supermarket and would like to seek help with regard to its costing system. I was asked to describe the company’s costing system.

I have identified supermarket as a value-added intermediary between suppliers and customers, but how do I classify or describe it's costing system since it does not manufacture its own product. Would there be a manufacturing cost incurred or I can only trace non-manufacturing costs to its products?

I am comparing between job-order costing and activity-based costing.

Smith Inc. engaged in the following transactions in 2019.

Smith Inc. Journal General – External Transactions                                             

A perfectly competitive market can only make normal profits because there are many price taker firms in the industry and absence of barriers in on entry and exit of new firms and can maximizes its profits when the marginal revenue is equal to the marginal cost. Also a perfectly competitive firm will always produce till a output where marginal revenue equals to, marginal cost and the firm can only incur profit by producing fewer than the equilibrium quantity as marginal revenue and equilibrium price are greater than marginal cost. The firm can also focus on increasing efficiency and reduce costs so that it can produce a higher level of output at the marginal cost which equals price, (Principles of Managerial Economics, n.d). Product differentiation is a marketing process that has the objective of making customers perceive the product of a specific firm as unique or superior to any other product belonging to the same group, and so creating a sense of value. Several models have been developed to analyses these two strategies, the most famous being Hotelling’s linear city model and its extension, the Salop’s circular city model, for horizontal differentiation and the Shaked-Sutton’s model for vertical differentiation. As a product becomes more differentiated and unique for consumers, it will become more difficult to compare it to other products and it will move competition with other products to non-pricing factors, (Policonomics, 2017).

What can be done differently?

P18.8 (LO 2, 3) (Time Value, Gift Cards, Discounts) Presented below are two independent revenue arrangements for Colbert Company.

Instructions
Respond to the requirements related to each revenue arrangement.

a.    Colbert sells 3D printer systems. Recently, Colbert provided a special promotion of zero-interest financing for 2 years on any new 3D printer system. Assume that Colbert sells Lyle Cartright a 3D system, receiving a $5,000 zero-interest-bearing note on January 1, 2020. The cost of the 3D printer system is $4,000. Colbert imputes a 6% interest rate on this zero-interest note transaction. Prepare the journal entry to record the sale on January 1, 2020, and compute the total amount of revenue to be recognized in 2020.

b.    Colbert sells 20 nonrefundable $100 gift cards for 3D printer paper on March 1, 2020. The paper has a standalone selling price of $100 (cost $80). The gift cards expiration date is June 30, 2020. Colbert estimates that customers will not redeem 10% of these gift cards. The pattern of redemption is as follows.

Redemption Total
March 31
50%
April 30
80%
June 30
85%
Prepare the 2020 journal entries related to the gift cards at March 1, March 31, April 30, and June 30.

Chamberlain Enterprises Inc. reported the following receivables in its December 31, 2021, year-end balance sheet:

Additional Information:

1. The notes receivable account consists of two notes, a $55,000 note and a $225,000 note. The $55,000 note is dated October 31, 2021, with principal and interest payable on October 31, 2022. The $225,000 note is dated June 30, 2021, with principal and 6% interest payable on June 30, 2022.
2. During 2022, sales revenue totaled $1,360,000, $1,290,000 cash was collected from customers, and $24,000 in accounts receivable were written off. All sales are made on a credit basis. Bad debt expense is recorded at year-end by adjusting the allowance account to an amount equal to 10% of year-end accounts receivable.
3. On March 31, 2022, the $225,000 note receivable was discounted at the Bank of Commerce. The bank's discount rate is 8%. Chamberlain accounts for the discounting as a sale.

Required:
1. In addition to sales revenue, what revenue and expense amounts related to receivables will appear in Chamberlain’s 2022 income statement?
2. & 3. What amounts will appear in the 2022 year-end balance sheet for accounts receivable and Calculate the receivables turnover ratio for 2022.

Chamberlain Enterprises Inc. reported the following receivables in its December 31, 2021, year-end balance sheet:

Additional Information:

1. The notes receivable account consists of two notes, a $55,000 note and a $225,000 note. The $55,000 note is dated October 31, 2021, with principal and interest payable on October 31, 2022. The $225,000 note is dated June 30, 2021, with principal and 6% interest payable on June 30, 2022.
2. During 2022, sales revenue totaled $1,360,000, $1,290,000 cash was collected from customers, and $24,000 in accounts receivable were written off. All sales are made on a credit basis. Bad debt expense is recorded at year-end by adjusting the allowance account to an amount equal to 10% of year-end accounts receivable.
3. On March 31, 2022, the $225,000 note receivable was discounted at the Bank of Commerce. The bank's discount rate is 8%. Chamberlain accounts for the discounting as a sale.

Required:
1. In addition to sales revenue, what revenue and expense amounts related to receivables will appear in Chamberlain’s 2022 income statement?
2. & 3. What amounts will appear in the 2022 year-end balance sheet for accounts receivable and Calculate the receivables turnover ratio for 2022.

Alliance, Inc is a manufacturer & marketer of gas lamps for utilization in mining & natural resources operations. Total industry sales in this relevant market were $100 million, with Alliance,s market share representing 5%. Alliances's contribution margin is 25%. Alliance's sales force calls on the widespread distributor network to generate their revenue. These distributors in turn sell the products to the industrial customers. Distributors generate on average revenue of $10,000 per outlet for Alliance. Each sales rep earns $50,000 per annum. Alliance has a corporate advertising & promotions campaign worth $640,000 which has managed to effectively maintain their brand awareness & image in the resources industry.

(a.) Alliance wants to raise their advertising budget by $200,000 to highlight their green initiatives and bolster brand presence further among expanding players in the industry.

- What increase in dollar sales revenue would be needed to recoup this incremental advertising expenditure?

- What increase in Alliance's overall market share does this call for?

(b.) Alliance is seeking to hire 2 more sales reps to expand further territories in their network by gaining access to additional distributors.

- How many new distributors would be required to cover the cost of hiring these 2 new sales reps?

(c.) Alliance is considering a 10% reduction in the price of its offerings.

- What absolute increase in its topline would be justifiable to maintain the present level of total contribution in dollars?

Chamberlain Enterprises Inc. reported the following receivables in its December 31, 2018, year-end balance sheet: Current assets: Accounts receivable, net of $26,000 in allowance for uncollectible accounts $ 228,000 Interest receivable 7,850 Notes receivable 280,000 Additional Information: The notes receivable account consists of two notes, a $55,000 note and a $225,000 note. The $55,000 note is dated October 31, 2018, with principal and interest payable on October 31, 2019. The $225,000 note is dated June 30, 2018, with principal and 6% interest payable on June 30, 2019. During 2019, sales revenue totaled $1,360,000, $1,290,000 cash was collected from customers, and $24,000 in accounts receivable were written off. All sales are made on a credit basis. Bad debt expense is recorded at year-end by adjusting the allowance account to an amount equal to 10% of year-end accounts receivable. On March 31, 2019, the $225,000 note receivable was discounted at the Bank of Commerce. The bank's discount rate is 8%. Chamberlain accounts for the discounting as a sale.

Required: 1. Not including sales revenue, what revenue and expense amounts related to receivables will appear in Chamberlain’s 2019 income statement? 2. & 3. What amounts will appear in the 2019 year-end balance sheet for accounts receivable and Calculate the receivables turnover ratio for 2019.