Swathmore Clothing Corporation grants its customers 30 days’
credit. The company uses the allowance method for its uncollectible
accounts receivable. During the year, a monthly bad debt accrual is
made by multiplying 2% times the amount of credit sales for the
month. At the fiscal year-end of December 31, an aging of accounts
receivable schedule is prepared and the allowance for uncollectible
accounts is adjusted accordingly.
At the end of 2020, accounts receivable were $576,000 and the
allowance account had a credit balance of $40,000. Accounts
receivable activity for 2021 was as follows:
| Beginning balance | $ | 576,000 | ||
| Credit sales | 2,630,000 | |||
| Collections | (2,493,000 | ) | ||
| Write-offs | (40,000 | ) | ||
| Ending balance | $ | 673,000 | ||
The company’s controller prepared the following aging summary of
year-end accounts receivable:
| Summary | ||||
| Age Group | Amount | Percent Uncollectible | ||
| 0−60 days | $ | 435,000 | 3 | % |
| 61−90 days | 98,000 | 10 | ||
| 91−120 days | 50,000 | 20 | ||
| Over 120 days | 90,000 | 30 | ||
| Total | $ | 673,000 | ||
Required:
1. Prepare a summary journal entry to record the
monthly bad debt accrual and the write-offs during the year.
2. Prepare the necessary year-end adjusting entry
for bad debt expense.
3-a. What is total bad debt expense for
2021?
3-b. How would accounts receivable appear in the
2021 balance sheet?
In: Accounting
LaBouche Company had cash receipts from customers in 2017 of $142,000. Cash payments for operating expenses were $97,000. Kelly has determined that at January 1, accounts receivable was $13,000, and prepaid expenses were $17,500. At December 31, accounts receivable was $18,600, and prepaid expenses were $23,100. The operating expenses on the accrual basis are:
In: Accounting
Swathmore Clothing Corporation grants its customers 30 days’
credit. The company uses the allowance method for its uncollectible
accounts receivable. During the year, a monthly bad debt accrual is
made by multiplying 2% times the amount of credit sales for the
month. At the fiscal year-end of December 31, an aging of accounts
receivable schedule is prepared and the allowance for uncollectible
accounts is adjusted accordingly.
At the end of 2020, accounts receivable were $592,000 and the
allowance account had a credit balance of $56,000. Accounts
receivable activity for 2021 was as follows:
| Beginning balance | $ | 592,000 | ||
| Credit sales | 2,710,000 | |||
| Collections | (2,573,000 | ) | ||
| Write-offs | (48,000 | ) | ||
| Ending balance | $ | 681,000 | ||
The company’s controller prepared the following aging summary of
year-end accounts receivable:
| Summary | ||||
| Age Group | Amount | Percent Uncollectible | ||
| 0−60 days | $ | 415,000 | 4 | % |
| 61−90 days | 98,000 | 12 | ||
| 91−120 days | 58,000 | 28 | ||
| Over 120 days | 110,000 | 39 | ||
| Total | $ | 681,000 | ||
Required:
1. Prepare a summary journal entry to record the
monthly bad debt accrual and the write-offs during the year.
2. Prepare the necessary year-end adjusting entry
for bad debt expense.
3-a. What is total bad debt expense for
2021?
3-b. How would accounts receivable appear in the
2021 balan
In: Accounting
Sara’s Salsa Company produces its condiments in two types: Extra
Fine for restaurant customers and Family Style for home use. Salsa
is prepared in department 1 and packaged in department 2. The
activities, overhead costs, and drivers associated with these two
manufacturing processes and the company’s production support
activities follow.
| Process | Activity | Overhead cost | Driver | Quantity | ||
| Department 1 | Mixing | $ | 5,600 | Machine hours | 2,000 | |
| Cooking | 11,200 | Machine hours | 2,000 | |||
| Product testing | 113,600 | Batches | 800 | |||
| $ | 130,400 | |||||
| Department 2 | Machine calibration | $ | 305,000 | Production runs | 400 | |
| Labeling | 17,500 | Cases of output | 110,000 | |||
| Defects | 4,500 | Cases of output | 110,000 | |||
| $ | 327,000 | |||||
| Support | Recipe formulation | $ | 80,000 | Focus groups | 80 | |
| Heat, lights, and water | 38,000 | Machine hours | 2,000 | |||
| Materials handling | 76,000 | Container types | 8 | |||
| $ | 194,000 | |||||
Additional production information about its two product lines
follows.
| Extra Fine | Family Style | |||
| Units produced | 31,000 | cases | 79,000 | cases |
| Batches | 310 | batches | 490 | batches |
| Machine hours | 800 | MH | 1,200 | MH |
| Focus groups | 55 | groups | 25 | groups |
| Container types | 6 | containers | 2 | containers |
| Production runs | 220 | runs | 180 | runs |
|
3. If the market price is $16 per case of Extra
Fine and $11 per case of Family Style, determine the gross profit
per case for each product. (Round your intermediate
calculations and final answers to 2 decimal
places.) |
||||
In: Accounting
Sara’s Salsa Company produces its condiments in two types: Extra Fine for restaurant customers and Family Style for home use. Salsa is prepared in department 1 and packaged in department 2. The activities, overhead costs, and drivers associated with these two manufacturing processes and the company’s production support activities follow.
| Process | Activity | Overhead cost | Driver | Quantity | ||
| Department 1 | Mixing | $ | 4,600 | Machine hours | 2,700 | |
| Cooking | 11,600 | Machine hours | 2,700 | |||
| Product testing | 114,300 | Batches | 600 | |||
| $ | 130,500 | |||||
| Department 2 | Machine calibration | $ | 340,000 | Production runs | 800 | |
| Labeling | 20,000 | Cases of output | 135,000 | |||
| Defects | 7,000 | Cases of output | 135,000 | |||
| $ | 367,000 | |||||
| Support | Recipe formulation | $ | 87,000 | Focus groups | 75 | |
| Heat, lights, and water | 54,000 | Machine hours | 2,700 | |||
| Materials handling | 83,000 | Container types | 8 | |||
| $ | 224,000 | |||||
Additional production information about its two product lines
follows.
| Extra Fine | Family Style | |||
| Units produced | 38,000 | cases | 97,000 | cases |
| Batches | 380 | batches | 220 | batches |
| Machine hours | 1,150 | MH | 1,550 | MH |
| Focus groups | 64 | groups | 11 | groups |
| Container types | 3 | containers | 5 | containers |
| Production runs | 290 | runs | 510 | runs |
Problem 17-5A Parts 1, 2 & 3
Required:
1. Using a plantwide overhead rate based on cases,
compute the overhead cost that is assigned to each case of Extra
Fine Salsa and each case of Family Style Salsa.
2. Using the plantwide overhead rate, determine
the total cost per case for the two products if the direct
materials and direct labor cost is $10 per case of Extra Fine and
$8 per case of Family Style.
3.a. If the market price of Extra Fine Salsa is
$18 per case and the market price of Family Style Salsa is $13 per
case, determine the gross profit per case for each product.
3.b. What might management conclude about the
Family Style Salsa product line?
5. If the market price is $18 per case of Extra Fine and $13 per case of Family Style, determine the gross profit per case for each product. (Round your intermediate calculations and final answers to 2 decimal places.)
***please be advised, there is NO PART 4 to this question. It goes from 3b, to 5.
In: Accounting
Your company needs to update stakeholders(customers, suppliers, government/MPs, partners, and the community) about the impact of COVD-19 on its services. What communication strategies would you use to share information with these stakeholders, and reasons for choosing such, considering their merits and demerits. Choose any five (5) stakeholders and show how you would communicate with them. [40]
In: Operations Management
Swathmore Clothing Corporation grants its customers 30 days’ credit. The company uses the allowance method for its uncollectible accounts receivable. During the year, a monthly bad debt accrual is made by multiplying 3% times the amount of credit sales for the month. At the fiscal year-end of December 31, an aging of accounts receivable schedule is prepared and the allowance for uncollectible accounts is adjusted accordingly. At the end of 2020, accounts receivable were $586,000 and the allowance account had a credit balance of $50,000. Accounts receivable activity for 2021 was as follows: Beginning balance $ 586,000 Credit sales 2,680,000 Collections (2,543,000 ) Write-offs (45,000 ) Ending balance $ 678,000 The company’s controller prepared the following aging summary of year-end accounts receivable: Summary Age Group Amount Percent Uncollectible 0−60 days $ 400,000 4 % 61−90 days 95,000 15 91−120 days 55,000 25 Over 120 days 128,000 36 Total $ 678,000 Required: 1. Prepare a summary journal entry to record the monthly bad debt accrual and the write-offs during the year. 2. Prepare the necessary year-end adjusting entry for bad debt expense. 3-a. What is total bad debt expense for 2021? 3-b. How would accounts receivable appear in the 2021 balance sheet?
In: Accounting
Swathmore Clothing Corporation grants its customers 30 days’
credit. The company uses the allowance method for its uncollectible
accounts receivable. During the year, a monthly bad debt accrual is
made by multiplying 2% times the amount of credit sales for the
month. At the fiscal year-end of December 31, an aging of accounts
receivable schedule is prepared and the allowance for uncollectible
accounts is adjusted accordingly.
At the end of 2020, accounts receivable were $606,000 and the
allowance account had a credit balance of $70,000. Accounts
receivable activity for 2021 was as follows:
| Beginning balance | $ | 606,000 | ||
| Credit sales | 2,780,000 | |||
| Collections | (2,643,000 | ) | ||
| Write-offs | (55,000 | ) | ||
| Ending balance | $ | 688,000 | ||
The company’s controller prepared the following aging summary of
year-end accounts receivable:
| Summary | ||||
| Age Group | Amount | Percent Uncollectible | ||
| 0−60 days | $ | 450,000 | 3 | % |
| 61−90 days | 74,000 | 13 | ||
| 91−120 days | 65,000 | 24 | ||
| Over 120 days | 99,000 | 39 | ||
| Total | $ | 688,000 | ||
Required:
1. Prepare a summary journal entry to record the
monthly bad debt accrual and the write-offs during the year.
|
|
2. Prepare the necessary year-end adjusting entry
for bad debt expense.
|
3-a. What is total bad debt expense for 2021?
|
3-b. How would accounts receivable appear in the 2021 balance sheet?
|
|||||||
In: Accounting
Swathmore Clothing Corporation grants its customers 30 days’
credit. The company uses the allowance method for its uncollectible
accounts receivable. During the year, a monthly bad debt accrual is
made by multiplying 2% times the amount of credit sales for the
month. At the fiscal year-end of December 31, an aging of accounts
receivable schedule is prepared and the allowance for uncollectible
accounts is adjusted accordingly.
At the end of 2020, accounts receivable were $610,000 and the
allowance account had a credit balance of $74,000. Accounts
receivable activity for 2021 was as follows:
| Beginning balance | $ | 610,000 | ||
| Credit sales | 2,800,000 | |||
| Collections | (2,663,000 | ) | ||
| Write-offs | (57,000 | ) | ||
| Ending balance | $ | 690,000 | ||
The company’s controller prepared the following aging summary of
year-end accounts receivable:
| Summary | ||||
| Age Group | Amount | Percent Uncollectible | ||
| 0−60 days | $ | 460,000 | 4 | % |
| 61−90 days | 78,000 | 15 | ||
| 91−120 days | 67,000 | 26 | ||
| Over 120 days | 85,000 | 41 | ||
| Total | $ | 690,000 | ||
Required:
1. Prepare a summary journal entry to record the
monthly bad debt accrual and the write-offs during the year.
2. Prepare the necessary year-end adjusting entry
for bad debt expense.
3-a. What is total bad debt expense for
2021?
3-b. How would accounts receivable appear in the
2021 balance sheet?
In: Accounting
1. A mutual fund company offers its customers a variety of funds: a money-market fund, three different bond funds (short, intermediate, and long-term), two stock funds (moderate and high-risk), and a balanced fund. Among customers who own shares in just one fund, the percentages of customers in the different funds are as follows. Money-market 25% High-risk stock 16% Short bond 10% Moderate-risk stock 25% Intermediate bond 8% Balanced 11% Long bond 5% A customer who owns shares in just one fund is randomly selected.
(a) What is the probability that the selected individual owns shares in the balanced fund? (
b) What is the probability that the individual owns shares in a bond fund?
(c) What is the probability that the selected individual does not own shares in a stock fund?
2. Suppose that 50% of all adults regularly consume coffee, 60% regularly consume carbonated soda, and 70% regularly consume at least one of these two products.
(a) What is the probability that a randomly selected adult
regularly consumes both coffee and soda?
(b) What is the probability that a randomly selected adult doesn't
regularly consume at least one of these two products?
3. Eighty percent of the light aircraft that disappear while in flight in a certain country are subsequently discovered. Of the aircraft that are discovered, 61% have an emergency locator, whereas 86% of the aircraft not discovered do not have such a locator. Suppose a light aircraft has disappeared. (Round your answers to three decimal places.)
(a) If it has an emergency locator, what is the probability that
it will not be discovered?
(b) If it does not have an emergency locator, what is the
probability that it will be discovered?
4. Suppose that the proportions of blood phenotypes in a particular population are as follows:
| A | B | AB | O |
| 0.50 | 0.07 | 0.04 | 0.39 |
a. Assuming that the phenotypes of two randomly selected
individuals are independent of one another, what is the probability
that both phenotypes are O? (Enter your answer to four decimal
places.)
b. What is the probability that the phenotypes of two randomly
selected individuals match? (Enter your answer to four decimal
places.)
In: Statistics and Probability