Raintree Cosmetic Company sells its products to customers on a credit basis. An adjusting entry for bad debt expense is recorded only at December 31, the company’s fiscal year-end. The 2017 balance sheet disclosed the following:

During 2018, credit sales were $1,780,000, cash collections from customers $1,860,000, and $41,000 in accounts receivable were written off. In addition, $3,600 was collected from a customer whose account was written off in 2017. An aging of accounts receivable at December 31, 2018, reveals the following:

Required:

1. Prepare summary journal entries to account for the 2018 write-offs and the collection of the receivable previously written off.
2. Prepare the year-end adjusting entry for bad debts according to each of the following situations:

Bad debt expense is estimated to be 4% of credit sales for the year.

Bad debt expense is estimated by computing net realizable value of the receivables. The allowance for uncollectible accounts is estimated to be 10% of the year-end balance in accounts receivable.

Bad debt expense is estimated by computing net realizable value of the receivables. The allowance for uncollectible accounts is determined by an aging of accounts receivable.

3. For situations (a)–(c) in requirement 2 above, what would be the net amount of accounts receivable reported in the 2018 balance sheet?

Entity A is a local construction company, which provides construction services to different types of customers. On 16 December 2017, Entity A ordered a concrete plant from Entity B. The listed price of the plant is $650,000 for general customers. However, Entity B offers a 10% trade discount to Entity A because it is one of its loyal customers. The plant was delivered to Entity A on 1 January 2018. According to the contract, Entity B provides a 2-month credit period to Entity A. Finally, Entity A fully settled the outstanding amount on 1 February 2018.

Installation and testing services are required to make the plant ready for use. On 1 January 2018, Entity C, the installation and testing service provider completed the concrete plant installation and testing services and certified the plant was really for use by Entity A. The cost of installation and testing services are $5,000 and it was settled with Entity C by cheque on 1 January 2018. At the inception stage, Entity A expected the useful life of the concrete plant is 5 years.

According to the local environmental protection regulation, Entity A is required to remove the concrete plant at the end of the reporting period in the Year 2022. The removal cost of $5,100 and the plant residual value of $4,013 was estimated at the inception of the contract respectively.

Finally, on 31 December 2022, the removal cost incurred was the same as the estimated amount and it will be paid in the first week of the Year 2023. However, the residual of the concrete plant can be sold by $1,900 only. A cheque was received on the same date.

Entity A always applies to discount with a rate of 8.05%.

REQUIRED:

According to relevant accounting standards, prepare journal entries to record the transactions of Entity A on 16 December 2017, 31 December 2017, 1 January 2018, 1 February 2018, 31 December 2018, 1 January 2020 and 31 December 2020, 1 January 2022 and 31 December 2022.

ACCOUNT NAMES FOR INPUT:

| PPE | Bank | Inventory | Revenue | Cost of sales | Payable | Receivable |

| Restoration liability | Interest expense | Interest revenue | Depreciation | Accum. depreciation |

| Loss on disposal | Gain on disposal | Share capital | Retained earnings | No entry |

ANSWERS:

Journal Entries:

Consider a small growing company that distributes kitchen supplies. Customers are primarily small retailers such as kitchen specialty stores, hardware stores, and other types of home retail stores. Managers keep track of all customers, orders, and inventory information using a spreadsheet.

- Identify and describe one operational level decision, one managerial level decision, one strategic decision that can be made within this company. Explain your reasoning briefly.

- Describe two types of reports that can be produced by an MIS to help managers make recurring decisions in managing a function or the entire business. Use the context of the business scenario, provide an example of each type.

Raintree Cosmetic Company sells its products to customers on a credit basis. An adjusting entry for bad debt expense is recorded only at December 31, the company’s fiscal year-end. The 2020 balance sheet disclosed the following:

During 2021, credit sales were $1,820,000, cash collections from customers $1,900,000, and $53,000 in accounts receivable were written off. In addition, $4,400 was collected from a customer whose account was written off in 2020. An aging of accounts receivable at December 31, 2021, reveals the following:

Required:
1. Prepare summary journal entries to account for the 2021 write-offs and the collection of the receivable previously written off.
2. Prepare the year-end adjusting entry for bad debts according to each of the following situations:

1. Bad debt expense is estimated to be 3% of credit sales for the year.
2. Bad debt expense is estimated by adjusting the allowance for uncollectible accounts to the balance that reduces the carrying value of accounts receivable to the amount of cash expected to be collected. The allowance for uncollectible accounts is estimated to be 10% of the year-end balance in accounts receivable.
3. Bad debt expense is estimated by adjusting the allowance for uncollectible accounts to the balance that reduces the carrying value of accounts receivable to the amount of cash expected to be collected. The allowance for uncollectible accounts is determined by an aging of accounts receivable.

3. For situations (a)−(c) in requirement 2 above, what would be the net amount of accounts receivable reported in the 2021 balance sheet?
  

Elsa is a data analytics intern at a financial firm. Her company has obtained their customers bank transaction records recently. Elsa has been asked by her manager to find out all the attributes (variables) that can be delivered from those bank transaction records for creating the machine learning algorithm. The machine learning algorithm will help Elsa's firm to determine whether someone is likely to get a loan approval or not.
List 5 attributes (variables) and explain why they should be considered in the Machine Learning Assignment

The distribution system for the Herman Company consists of three plants, two warehouses, and four customers. Plant capacities and shipping costs per unit (in $) from each plant to each warehouse are as follows:

                       Warehouse

Plant           1                       2            Capacity

1                4                        7               450

2                8                         5              600

3                5                         6               380

                            Customer

Warehouse          1                        2                            3                             4

1                            6                       4                            8                             4

2                           3                         6                            7                             7

Demand                300                     300                         300                        400

Formulate the linear programming model to minimize the cost of shipping for this transshipment problem.

A-at the optimal solution how much is shipped from Plant 3 to Warehouse 1?

B-what is the range of optimality of coefficient of cost from Plant 3 to Warehouse 1 and what does this

mean?

C-what is the range of feasibility for the supply amount for Plant 2 and what does it mean?

D-what is the range of feasibility for the demand amount for customer 2 and what does it mean?

Bird's Eye Treehouses, Inc., a Kentucky company, has determined that a majority of its customers are located in the Pennsylvania area. Therefore, it is considering using a lockbox system offered by a bank located in Pittsburgh. The bank has estimated that use of the system will reduce collection time by 2 days. Average number of payments per day 870 Average value of payment $ 820 Variable lockbox fee (per transaction) $ .20 Annual interest rate on money market securities 4.6 % a. What is the NPV of the new lockbox system? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. Suppose in addition to the variable charge that there is an annual fixed charge of $4,000 to be paid at the end of each year. What is the NPV now? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) (please explain)

Raintree Cosmetic Company sells its products to customers on a credit basis. An adjusting entry for bad debt expense is recorded only at December 31, the company’s fiscal year-end. The 2017 balance sheet disclosed the following:

During 2018, credit sales were $1,810,000, cash collections from customers $1,890,000, and $51,000 in accounts receivable were written off. In addition, $4,200 was collected from a customer whose account was written off in 2017. An aging of accounts receivable at December 31, 2018, reveals the following:

Required:

1. Prepare summary journal entries to account for the 2018 write-offs and the collection of the receivable previously written off.
2. Prepare the year-end adjusting entry for bad debts according to each of the following situations:

1. Bad debt expense is estimated to be 4% of credit sales for the year.
2. Bad debt expense is estimated by computing net realizable value of the receivables. The allowance for uncollectible accounts is estimated to be 10% of the year-end balance in accounts receivable.
3. Bad debt expense is estimated by computing net realizable value of the receivables. The allowance for uncollectible accounts is determined by an aging of accounts receivable.

3. For situations (a)–(c) in requirement 2 above, what would be the net amount of accounts receivable reported in the 2018 balance sheet?

A local T-shirt company is running a promotion as follows: For customers that buy less than 5 TShirts, there is no disconut. If a customer buys: between 6 and 10 Tshirts they get 10% discount. between 11 and 20 TShirts they get 20% discount. between 21 and 100 TShirts they get 50% discount. Write a C++ program that prompts the user for a number of TShirts. Assuming that a TShirt costs $10, calculate the appropriate discounts and display the number of TShirts bought, total amount, discount amount, and total amount due. For example, if the user bought 11 TShirts, the program should display the following: Number of TShirts bought: 11 Total amount : $ 110 Discount amount : $ 22 Total amount due : $ 88 If the user enters negative values or a 0 for number ofTshirts display an error message and ask them to run the program again.