Penny Cookie Company offers credit terms to its customers. At the end of Year 1, accounts receivable totaled $120,000. The allowance method is used to account for uncollectible accounts. The allowance for uncollectible accounts had a credit balance of $12,000 at the beginning of Year 1 and $6,200 in receivables were written off during the year as uncollectible. Also, $600 in cash was received in December from a customer whose account previously had been written off. The company estimates bad debts by applying a percentage of 6% to accounts receivable at the end of the year.

1. Prepare journal entries to record the write-off of receivables, the collection of $600 for previously written off receivables, and the year-end adjusting entry for bad debt expense.

2. How would accounts receivable be shown in the Year 1 year-end balance sheet?

When customers have an unpleasant customer experience, the company no longer has to worry about them telling a few friends and family; the company now has to worry about them telling everyone. Internet service providers are giving frustrated consumers another means of fighting back. Free or low-cost computer space for Internet websites is empowering consumers to tell not only their friends but also the world about the way they have been treated. A few examples of disgruntled customer stories from the Internet include:

■ A bike-riding tourist requires stitches after being bitten on the leg by a dog. The tourism company is banned from renting bikes and in turn bars the tourist from taking any future tours.

■ A customer leaving Best Buy refuses to show the receipt voluntarily to the guard at the door. The Best Buy employees try to seize the customer’s cart and then decide to park a car behind the customer’s vehicle.

■ Enterprise Rent-A-Car operates a high-stress business, and frequently its customers find that the company did not honor reservations, did not have cars ready for reservations, rented cars with empty tanks of gas, and charged higher rates to corporate account holders.

The pervasive nature of the Internet is increasing customer power and changing business from product-focused to customer-focused. Explain the difference between product-focused business and customer-focused business and why CRM is more important than ever before.

Evaluate your company(Starbucks) and make an assessment of how you think customers value their products and services. Do they simply meet expectations or do they consistently exceed the levels of expectations?

Based on Consumer Behavior 8th Edition by Babin + Harris. Chapter 14: Consumption to satisfaction.

A car rental company allows its customers to pick up a rental car at one location and return it to any of its locations. Currently, two locations (1 and 2) have 16 and 18 surplus cars, respectively; and four locations (3, 4, 5, and 6) each need 10 additional cars. Because 34 surplus cars are available at locations 1 and 2 combined, and 40 cars are needed at locations 3, 4, 5, and 6 combined, some locations will not receive as many cars as they need. Management wants to make sure all surplus cars are sent where they are needed, and that each location needing cars receives at least five. Management wants to do this with the lowest total miles added to the cars. The distance (in miles) from locations 1 and 2 to the other locations are summarized in the following table:

(1.1) Formulate a linear programming model for this problem

(1.2) Create a spreadsheet model for this problem and solve it using Solver. Submit your Excel file on iLearn.

(1.3) What is the optimal solution?

(1.4) Which location is receiving the fewest cars?

(1.5) Suppose location 6 must have at least eight cars shipped to it. What impact does this have on the optimal objective function value?

QC.56 Thirst, an IBC company, wants to serve their customers within a consistent, reasonable amount of time. On each day during their second week of business (5 days total) they randomly timed the wait time of 12 different customers (per day). The table below contains the average wait time (in seconds) for each of these days as well as the minimum and maximum wait times for each day:

Using this information (above) and the table at the top of this problem (Factors for Control Charts), set up an x-bar chart and an r-chart.
Hint: Answer the following questions to help you gather the necessary data to complete these problems.

• Is a target wait time given? If not, then you should calculate the sample mean (average of the average times) and use that as the target wait time.
• Do you know what the range is for the wait times each day (the difference between the minimum and maximum times)? How about the average range across all days?
  

What is the upper control limit for the x-bar chart? (Display your answer to two decimal places.
   

What is the lower control limit for the x-bar chart? (Display your answer to two decimal places.)

   

What is the upper control limit for the r-chart? (Display your answer to two decimal places.)
   ​

What is the lower control limit for the r-chart? (Display your answer to two decimal places.)
   ​

Part 2: An electric company charges to their customers based on Kilowatt-Hours (Kwh) used. The rules to compute the charge are: First 100 Kwh, 35 cents per Kwh Each of the next 100 Kwh (up to 200 Kwh), 45 cents per Kwh (the first 100 Kwh used is still charged at 35 cents each) Each of the next 300 Kwh (up to 500 Kwh) 65 cents per Kwh All Kwh over 500, 80 cents per KH Create a C# Form with a textbox to enter Kwh used, a read-only textbox to display the electricity charges, and a button to compute the charges. The Kwh used could be a number with decimals. Requirements: 1. Input validation: Use the KWH textbox validating event to ensure the KWH cannot exceed 2000. Test your program with (1) Kwh=4500, (2) Kwh = 350 2. Turn in the form’s screenshot and the code.

In C# using Visual Studios 2017 Windows form app

A car rental company usually requires customers to buy insurance to cover their rented cars against damage and the insurance premium is much higher than the normal car insurance for similar coverage. Discuss why this is the case using the context of asymmetric information

A poll conducted between February and April of 2006 surveyed 2822 Internet users and found that 198 of them had downloaded a podcast to listen to it or view it later at least once. A similar poll in May of the same year found that 295 of 1553 Internet users had downloaded a podcast at least once. Test the null hypothesis that the two proportions are equal.

Practice Question:

It has long been told that the French purchased Manhattan island in 1626 for the value of 60 guilders ($24). Assuming that the French invested this money into an account earning 5%, approximately how much would their investment be worth 380 years later in 2006?

A) $1.9 billion B) $2.7 billion C) $3.1 billion D) $4.5 billion

CHAPTER 5

FATABÚÐ Distributing Company completed these merchandising transactions in the month of April. At the beginning of April, the ledger of FATABÚÐ showed Cash of $10,000 and Common Stock of $10,000.

Apr. 2 Purchased merchandise on account from Drekka Co. $8,700, terms 2/10, n/30.
Apr. 4 Sold merchandise on account to Gata, Inc. $6,000, terms 2/10, n/30, FOB Destination. The cost of the merchandise sold was $3,700.

Apr. 5 Paid $200 freight by check on April 4 sale.
Apr. 6 Received credit from Drekka Co. for merchandise returned $400.
Apr. 11 Paid Drekka Co. in full, less discount.
Apr. 13 Received collections in full, less discounts, from Gata, Inc., billed on
April 4.
Apr. 14 Purchased merchandise from Flug, Inc. for cash $4,700. No shipping costs incurred.
Apr. 16 Received refund of $500 from Flug, Inc. for returned merchandise on cash purchase of April 14.
Apr. 18 Purchased merchandise from Sigga Distributors $5,500, terms 2/10, n/30, FOB Shipping Point.
Apr. 20 Paid freight by check on April 18 purchase $180.
Apr. 23 Sold merchandise for cash to Kirkja, Inc. for $8,300. The cost of the merchandise sold was $5,580.
Apr. 26 Purchased merchandise for cash from Silung, Inc. for $2,300.
Apr. 27 Paid Sigga Distributors in full, less discount.
Apr. 29 Made refunds to various cash customers for returned merchandise $180. The returned merchandise had a cost of $120.
Apr. 30 Sold merchandise on account to Frimirki, Inc. $3,980, terms n/30. The cost of the merchandise sold was $2,500. No shipping charges.

FATABÚÐ Distributing Company’s chart of accounts includes:

Cash, Accounts Receivable, Inventory, Accounts Payable, Common Stock, Sales Revenue, Sales Returns and Allowances, Sales Discounts, Cost of Goods Sold, and Freight-Out.

Instructions (a) Journalize the transactions. (b) Prepare the income statement through gross profit for the month of April 2014.

TIP: Since you need to prepare an income statement through gross profit, you should keep track of your accounts as you go along.