Assume that XYZ company was started a year ago. As they are trying to figure out how to account for the uncollectible accounts, they are unsure of which method to use. If you recall in your principles class, it was broken down in to the Allowance Method and the Direct Write-Off Method. This book breaks the Allowance Method into two areas: 1. The sales revenue approach; and 2. The gross accounts receivable approach. There are not sure which method to use: 1. The sales revenue approach; 2. The gross accounts receivable approach; or 3. The direct write off method approach.

You have been hired to answer these specific questions: 1. Explain to them the difference among these three methods and which method you recommend and explain specifically why you would recommend that method. 2. Discuss the importance of making sure the accounts receivable reflects the correct balance and what the net realizable value is.

The Bradford Company issued 6% bonds, dated January 1, with a face amount of $50 million on January 1, 2018 to Saxton-Bose Corporation. The bonds mature on December 31, 2022 (5 years). For bonds of similar risk and maturity, the market yield is 8%. Interest is paid semiannually on June 30 and December 31. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.):

Required:
1. to 3. Prepare the journal entry to record the purchase of the bonds by Saxton-Bose on January 1, 2018, interest revenue on June 30, 2018 and interest revenue on December 31, 2018 (at the effective rate). (Enter your answers in whole dollars. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

The Bradford Company issued 8% bonds, dated January 1, with a face amount of $70 million on January 1, 2018 to Saxton-Bose Corporation. The bonds mature on December 31, 2032 (15 years). For bonds of similar risk and maturity, the market yield is 10%. Interest is paid semiannually on June 30 and December 31. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.):

Required:
1. to 3. Prepare the journal entry to record the purchase of the bonds by Saxton-Bose on January 1, 2018, interest revenue on June 30, 2018 and interest revenue on December 31, 2018 (at the effective rate). (Enter your answers in whole dollars. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

The Bradford Company issued 8% bonds, dated January 1, with a face amount of $70 million on January 1, 2018 to Saxton-Bose Corporation. The bonds mature on December 31, 2032 (15 years). For bonds of similar risk and maturity, the market yield is 10%. Interest is paid semiannually on June 30 and December 31. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.):

Required:
1. to 3. Prepare the journal entry to record the purchase of the bonds by Saxton-Bose on January 1, 2018, interest revenue on June 30, 2018 and interest revenue on December 31, 2018 (at the effective rate). (Enter your answers in whole dollars. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Question:

The Bradford Company issued 10% bonds, dated January 1, with a face amount of $90 million on January 1, 2018 to Saxton-Bose Corporation. The bonds mature on December 31, 2037 (20 years). For bonds of similar risk and maturity, the market yield is 12%. Interest is paid semiannually on June 30 and December 31. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.):

Required:

1. to 3. Prepare the journal entry to record the purchase of the bonds by Saxton-Bose on January 1, 2018, interest revenue on June 30, 2018 and interest revenue on December 31, 2018 (at the effective rate). (Enter your answers in whole dollars. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Bustillo Company operates sight-seeing buses. Management has identified two cost drivers—the number of buses in operation and the number of passengers served —that it uses in its budgeting and performance reports. Data concerning the company’s cost formulas appear below:

For example, vehicle operating costs should be $6,800 per month plus $476 per bus plus $3 per passenger. The company’s sales revenue should average $30 per passenger. In July, the company operated 54 buses and served a total of 3,150 passengers. How much is the company’s flexible budget operating income for July?

Multiple Choice

• $60,431

• $34,069

• $32,504

• $52,546

Q 1) What is the price leadership model of Oligopoly pricing and what are its tactics?(2 points)

Q 2)" In monopolistically competitive markets, neither allocative nor productive efficiency is realized" explain.(2 points)

Q 3) Do you agree that companies under monopolistic competition can have a profit in the long run?

If yes, why? if no, why not? (2 points)

Q 4) Compare MPP (marginal Physical product of labor) and MRP (marginal revenue product of labor). (2 points)

Q 5) In kinked demand curve of Oligopoly, if a company increases its price, how do its competitors react? If a company cuts its price, how do its competitors react? ( 2 points)

Please answer all five questions with at least 3 sentences each. (10 possible points)

Exercise 6-21B Complete the accounting cycle using inventory transactions (LO6-2, 6-3, 6-5, 6-6, 6-7)

[The following information applies to the questions displayed below.]

On January 1, Year 1, the general ledger of a company includes the following account balances:

The $41,000 beginning balance of inventory consists of 410 units, each costing $100. During January Year 1, the company had the following inventory transactions:

The following information is available on January 31, Year 1.

1. At the end of January, the company estimates that the remaining units of inventory are expected to sell in February for only $100 each.
2. The company estimates future uncollectible accounts. The company determines $5,100 of accounts receivable on January 31 are past due, and 40% of these accounts are estimated to be uncollectible. The remaining accounts receivable on January 31 are not past due, and 5% of these accounts are estimated to be uncollectible. (Hint: Use the January 31 accounts receivable balance calculated in the general ledger.)
3. Accrued interest expense on notes payable for January. Interest is expected to be paid each December 31.
4. Accrued income taxes at the end of January are $13,400.

Exercise 6-21B Part 7

7. Analyze how well the company manages its inventory:

a-1. Calculate the inventory turnover ratio for the month of January. (Round your final answer to 1 decimal place)
  

a-2. If the industry average of the inventory turnover ratio for the month of January is 18.5 times, is the company managing its inventory more or less efficiently than other companies in the same industry?
  

• More

• Less

b-1. Calculate the gross profit ratio for the month of January. (Round your final answer to 1 decimal place)
  

b-2. If the industry average gross profit ratio is 33%, is the company more or less profitable per dollar of sales than other companies in the same industry?
  

• More

• Less

c. Is the company’s strategy to sell a higher volume of less expensive items or does the company appear to be selling a lower volume of more expensive items?
  

• Higher volume of less expensive

• Lower volume of more expensive

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PARASITOLOGY QUESTION:

Amoeba case study

Calatagan is a third-class municipality in the province of Batangas, Philippines. It has a total population of 30,500 with a total of 8 barangays. The municipality’s major revenue comes from agriculture and aquaculture. A section of the population is employed in “Ang Pulo,” an island housing a mangrove forest conservation park located in the northeast. Some residents of Calatagan are settled along the major highway that connects it to neighboring municipalities, while some live further inland, usually near farms. Major streets are cemented but small streets are not. Deep well is the main source of water but there is one water distillery station serving three barangays in the municipality. In the summer of 2005, there were 950 cases of a rare eye infection in one barangay that affected residents of different ages. The infection is characterized by severe pain and reddening of the cornea. Antiviral drugs where administered but the patients’ condition did not improve. There were also 1500 reported cases of diarrhea by the RHU. Stool examination results from specimens submitted by patients revealed an increase in WBC count. Strange crystal-like structures were also seen under the microscope in some of the stool specimens. The mayor of Calatagan ordered an immediate investigation of the probable cause of the cases.

Questions to answer:

1. Identify the probable cause of the incidents in Calatagan, Batangas. Justify. (provide references for your answers)

2. What could have been the sources of infection of the residents in Calatagan? Describe the probable mode of infection for each identified cause. Cite examples and references.

3. Briefly provide a possible plan of action on how to control the cases in Calatagan.

PARASITOLOGY QUESTION:

Amoeba case study

Calatagan is a third-class municipality in the province of Batangas, Philippines. It has a total population of 30,500 with a total of 8 barangays. The municipality’s major revenue comes from agriculture and aquaculture. A section of the population is employed in “Ang Pulo,” an island housing a mangrove forest conservation park located in the northeast. Some residents of Calatagan are settled along the major highway that connects it to neighboring municipalities, while some live further inland, usually near farms. Major streets are cemented but small streets are not. Deep well is the main source of water but there is one water distillery station serving three barangays in the municipality. In the summer of 2005, there were 950 cases of a rare eye infection in one barangay that affected residents of different ages. The infection is characterized by severe pain and reddening of the cornea. Antiviral drugs where administered but the patients’ condition did not improve. There were also 1500 reported cases of diarrhea by the RHU. Stool examination results from specimens submitted by patients revealed an increase in WBC count. Strange crystal-like structures were also seen under the microscope in some of the stool specimens. The mayor of Calatagan ordered an immediate investigation of the probable cause of the cases.

Questions to answer:

1. Identify the probable cause of the incidents in Calatagan, Batangas. Justify. (provide references for your answers)

2. What could have been the sources of infection of the residents in Calatagan? Describe the probable mode of infection for each identified cause. Cite examples and references.

3. Briefly provide a possible plan of action on how to control the cases in Calatagan.