...CHAPTER 9: Accounting for receivables ANSWERS TO QUESTIONS 1. Accounts receivable are amounts owed by customers on account. They result from the sale of goods and services in the normal course of business operations (i.e. in trade). Notes receivable represent claims that are evidenced by formal instruments of credit. 4. The essential features of the allowance method of accounting for impairment of receivables are: (1) Impaired accounts receivable are estimated and matched against revenue in the same accounting period in which the revenue occurred. (2) Estimated uncollectables are debited to Bad Debts Expense and credited to Allowance for Impairment through an adjusting entry at the end of each period. (3) Actual uncollectables are debited to Allowance for Impairment and credited to Accounts Receivable at the time the specific account is written off. 9. From its own credit cards, the Virgil Ltd may realise financing charges from customers who do not pay the balance due within a specified grace period. National credit cards offer the following advantages: (1) The credit card issuer makes the credit card investigation of the customer. (2) The issuer maintains individual customer accounts. (3) The issuer undertakes the collection process and absorbs any losses from uncollectable accounts. (4) The retailer receives cash more quickly from the credit card issuer than it would from individual...
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...CLASSIFICATION TABLE Brief Exercises 1 A Problems B Problems Study Objectives 1. Identify the different types of receivables. Explain how companies recognize accounts receivable. Distinguish between the methods and bases companies use to value accounts receivable. Describe the entries to record the disposition of accounts receivable. Compute the maturity date of and interest on notes receivable. Explain how companies recognize notes receivable. Describe how companies value notes receivable. Describe the entries to record the disposition of notes receivable. Explain the statement presentation and analysis of receivables. Questions 1, 2 Exercises 2. 3 2 1, 2, 14 1A, 3A, 4A, 6A, 7A 1B, 3B, 4B, 6B, 7B 3. 4, 5, 6, 7, 8 3, 4, 5, 6, 7 3, 4, 5, 6 1A, 2A, 3A, 4A, 5A 1B, 2B, 3B, 4B, 5B 4. 9, 10, 11 8 7, 8, 9, 14 6A, 7A 6B, 7B 5. 12, 13, 14, 15, 16 9, 10 10, 11, 12, 13 6A, 7A 6B, 7B 6. 11 10, 11, 12 7A 7B 7. 7A 7B 8. 17 12, 13 6A, 7A 6B, 7B 9. 18, 19 3, 12 14, 15 1A, 6A 1B, 6B 9-1 ASSIGNMENT CHARACTERISTICS TABLE Problem Number Description 1A 2A 3A 4A 5A 6A 7A 1B 2B 3B 4B 5B 6B 7B Prepare journal entries related to bad debts expense. Compute bad debts amounts. Journalize entries to record transactions related to bad debts. Journalize transactions related to bad debts. Journalize entries to record transactions related to bad debts. Prepare entries for...
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...CLASSIFICATION TABLE Brief Exercises 1 A Problems B Problems Study Objectives 1. Identify the different types of receivables. Explain how companies recognize accounts receivable. Distinguish between the methods and bases companies use to value accounts receivable. Describe the entries to record the disposition of accounts receivable. Compute the maturity date of and interest on notes receivable. Explain how companies recognize notes receivable. Describe how companies value notes receivable. Describe the entries to record the disposition of notes receivable. Explain the statement presentation and analysis of receivables. Questions 1, 2 Exercises 2. 3 2 1, 2, 14 1A, 3A, 4A, 6A, 7A 1B, 3B, 4B, 6B, 7B 3. 4, 5, 6, 7, 8 3, 4, 5, 6, 7 3, 4, 5, 6 1A, 2A, 3A, 4A, 5A 1B, 2B, 3B, 4B, 5B 4. 9, 10, 11 8 7, 8, 9, 14 6A, 7A 6B, 7B 5. 12, 13, 14, 15, 16 9, 10 10, 11, 12, 13 6A, 7A 6B, 7B 6. 11 10, 11, 12 7A 7B 7. 7A 7B 8. 17 12, 13 6A, 7A 6B, 7B 9. 18, 19 3, 12 14, 15 1A, 6A 1B, 6B 9-1 ASSIGNMENT CHARACTERISTICS TABLE Problem Number Description 1A 2A 3A 4A 5A 6A 7A 1B 2B 3B 4B 5B 6B 7B Prepare journal entries related to bad debts expense. Compute bad debts amounts. Journalize entries to record transactions related to bad debts. Journalize transactions related to bad debts. Journalize entries to record transactions related to bad debts. Prepare entries for...
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...It is a common myth across the globe that too much running is bad for the human body. But is this true? Is there a specific amount of mileage that is the best? By knowing how much running is good for one’s health and how it actually benefits the body, could this help people live longer and keep them healthier? Some believe that too much running is actually bad for the body and has different effects than intended. Still others state that running, no matter the amount, is good for you. However, there is only one right answer. As a result of running too much, the intended good effects could cease to exist; because of this, it is imperative to find a “middle-ground” while running. With this in mind, too much running has been proven to be bad for...
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...|Learning | |Questions | |Exercises | |Do It! | |Objectives | | | | | | | | | | | | | | | |1A | |Prepare journal entries related to bad debt expense. | |Simple | |15–20 | | | | | | | | | |2A | |Compute bad debt amounts. | |Moderate | |20–25 | | | | | | | | | |3A | |Journalize entries to record transactions related to bad debts. | |Moderate | |20–30 | | | | | | | | | |4A | |Journalize transactions related to bad debts. | |Moderate | |20–30 | | ...
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...ACC211 Chapter 4 Click Link Below To Buy: http://hwcampus.com/shop/acc211-chapter-4/ Brief Exercise 4-5 Your answer is correct. Stacy Corporation had income before income taxes for 2014 of $6,325,000. In addition, it suffered an unusual and infrequent pretax loss of $787,700 from a volcano eruption. The corporation’s tax rate is 30%. Prepare a partial income statement for Stacy beginning with income before income taxes. The corporation had 4,954,000 shares of common stock outstanding during 2014. Brief Exercise 4-7 Your answer is correct. Vandross Company has recorded bad debt expense in the past at a rate of 1.5% of net sales. In 2014, Vandross decides to increase its estimate to 2%. If the new rate had been used in prior years, cumulative bad debt expense would have been $385,820 instead of $302,620. In 2014, bad debt expense will be $130,260 instead of $92,200. If Vandross’s tax rate is 27%, what amount should it report as the cumulative effect of changing the estimated bad debt rate? Brief Exercise 4-8 Your answer is correct. In 2014, Hollis Corporation reported net income of $1,077,000. It declared and paid preferred stock dividends of $269,000. During 2014, Hollis had a weighted average of 199,100 common shares outstanding. Compute Hollis’s 2014 earnings per share. Brief Exercise 4-10 Your answer is correct. Portman Corporation has retained earnings of $720,100 at January 1, 2014. Net income during 2014 was $1,651...
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...An American Epidemic Every time I turn my television or computer on I am always looking at an advertisement about weight loss. All of the diet pills, crash diet regimens, and exercise equipment have had my head spinning and it really got me to thinking. America has an obesity epidemic. No diet pills or crash diets are going to help this epidemic; sure some of the exercise equipment will if you use it regularly and correctly. The only way we can stop the obesity is by educating ourselves and learning how to eat healthy and maintain a healthy lifestyle for a healthier life. America has an obesity epidemic, and the only way we can cease the obesity across the nation is by learning to eat healthy and learning how to maintain the habits to live a healthy lifestyle. Obesity is no longer a weight problem it is a health problem. Several diseases are now linked to obesity: diabetes, heart disease, high blood pressure, high blood cholesterol and stroke. (American Heart Association 2008) Obesity is due to the intake of too many calories and lack of exercise. Body fat determines obesity and if the Body Mass Index is greater than 30.0 then it is considered an obese weight. Body Mass Index is determined by multiplying your weight by 703, divide by height in inches, and then divide by height again in inches.(American Heart Association 2008) When eating you should always remember to eat enough calories for your specific age, weight, and height...
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...Personal Food Diary Guidelines Purpose The purpose of this assignment is to increase self-awareness of the student by analyzing personal nutritional intake and activity routine throughout the course. In turn, the student will be able to help others modify their diet and activity, and improve overall wellness. An examination of a personal food and activity assessment will provide the student with essential data from which to change their health and wellness behaviors. Course Outcomes This assignment enables the student to meet the following course outcomes: CO #1 Assess whether nutritional intake provides basic nutrients for optimal health and wellness. (PO #1, PO #2) CO #2 Describe nutritional needs for optimal health and wellness throughout the life span. (PO #1, PO #2) CO #3 Discuss the psychological, sociological, economical, and cultural implications of food on nutritional status. (PO #1, PO #2) CO #4 Describe evidence-based interventions and modifications in nutrition therapy that can positively influence the outcome of disease and illness. (PO #1, PO #8) Due Date Refer to Course Calendar for campus requirements. Online will submit by Sunday, Unit 7 11:59 pm MT. Total Points Possible: 100 Requirements 1. Create a concept map document based on the food and activity journal throughout the course using www.chooseMyPlate.gov. The discussion questions in units 1, 3, 5, & 7 will provide you with questions on what aspect of diet to focus on. You are...
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...Objectives Questions Brief Exercises 1. Identify the different types of receivables. 1, 2 1 2. Explain how companies recognize accounts receivable. 3 2 3. Distinguish between the methods and bases companies use to value accounts receivable. 4, 5, 6, 7, 8 3, 4, 5, 6, 7 4. Describe the entries to record the disposition of accounts receivable. 9, 10, 11 5. Compute the maturity date of and interest on notes receivable. 12, 13, 14, 15, 16 6. Explain how companies recognize notes receivable. 7. Describe how companies value notes receivable. 8. Describe the entries to record the disposition of notes receivable. 17 9. Explain the statement presentation and analysis of receivables. 18, 19 Do It! Exercises A Problems B Problems 1, 2 1A, 3A, 4A, 1B, 3B, 4B, 6A, 7A 6B, 7B 1 3, 4, 5, 6 1A, 2A, 3A, 1B, 2B, 3B, 4A, 5A 4B, 5B 8 2 7, 8, 9 6A, 7A 6B, 7B 9, 10 3 10, 11, 12, 13 6A, 7A 6B, 7B 10, 11, 12 7A 7B 7A 7B 11 3 3, 12 12, 13 6A, 7A 6B, 7B 4 14 1A, 6A 1B, 6B Copyright © 2013 John Wiley & Sons, Inc. Weygandt Financial, IFRS, 2/e, Solution’s Manual (For Instructor Use Only) 8-1 ASSIGNMENT CHARACTERISTICS TABLE Problem Number Description 1A 2A Simple 15–20 Compute bad debt amounts. Moderate 20–25 3A Journalize entries to record transactions related to bad debts. Moderate 20–30 4A Journalize transactions related to bad debts. Moderate 20–30 5A Journalize entries to record transactions related to bad debts. Moderate 20–30...
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...Exercise 2-3 To: Jim Kakes From: Zhenqun Huang Subject: Suggestion about CMA Date: Sep. 10 2012 This memo is in response to your questions hiring a CMA. This memo will first explain Certified Management Accountant (CMA) and then discuss the value of CMA to the company. After you know the designation of CMA, you will be better able to decide whether the extra amount salary is worth. What Is Certified Management Accountant (CMA)? The title Certified Management Accountant (CMA) is used by various professional bodies around the world to designate their different professional certifications. CMA is also called as The Institute of Management Accountants (IMA) in the United State. IMA is a collective voice of accountants and financial professionals around the world who work in business, with job responsibilities distinct from those in public accounting. The Value of CMA to the Company IMA raises awareness of management accounting, which includes jobs in decision support, plan, and control positions. Some common job titles for management accountants include: Chief Financial Officer (CFO), Treasurer, Vice President of Finance, Controller, Treasurer, Finance Manager, Internal Auditor, Corporate or Division Planner, Cost Accountant, and Staff Accountant. The four-part CMA exam covers a wider body of knowledge, including Business Analysis, Management Accounting and Reporting, Strategic Management, and Business Applications which give the accounting staff a broader background...
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...may include individuals or companies of a higher risk category such as car loans for individuals or companies borrowing funds for a major expansion. *The Chapter 10 Critical Thinking Challenge questions are asked on page 496 of the text. Students are reminded at the conclusion of Chapter 10, page 515 of the text, to refer to the Critical Thinking Challenge questions at the beginning of the chapter. The solutions to the Critical Thinking Challenge questions are available here in the Solutions Manual and accessible to students on the Online Learning Centre. Copyright © 2010 by McGraw-Hill Ryerson Limited. All rights reserved. 809 Fundamental Accounting Principles, Thirteenth Canadian Edition Concept Review Questions 1. Writing off a bad debt against the allowance does not reduce the estimated realizable value of a company’s accounts receivable because the write-off reduces the balances of both Accounts Receivable and Allowance for Doubtful Accounts by equal amounts so the difference between the two accounts remains the...
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...Correlation and Causation The Link Between Sleep and Weight Correlation is the association between two variables, when there is an increase or decrease in one variable what effect does it has to the other variable (Triola, 2010). In this research the author looks on the relationship between a person who do not sleep or get quality sleep and their body weight. There was a study which highlighted a correlation between lack of sleep and increase in body weight. In the study with the women 40 – 60 years old, it was concluded that after studying their eating and sleeping pattern for 5-7 years women who had trouble falling asleep gained approximately 11 pounds. In the other study with the younger men, they studied their sleeping patterns for two consecutive days one day eight hour sleep and the other day four hour sleep. The researchers reported an increase in calorie intake (approximately 560 more) after sleeping for four days significantly more than the person who slept for eight hours. The two variables we have in this scenario is lack of sleep and increase in body weight, for these two variables to be correlated they must be linked or dependent on each other. Although the writer shows studies to show that when there is lack of sleep there is increase in appetite there can be other variables that determine the results such as location, body mass, individuals’ state of mind and age. According to the text the relationship between these two variables is weak and negative. The study...
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...EXERCISE 8-3 (a) Accounts Receivable 800,000 Sales Revenue 800,000 Cash 763,000 Accounts Receivable 763,000 (b) Allowance for Doubtful Accounts 7,300 Accounts Receivable 7,300 (c) Accounts Receivable 3,100 Allowance for Doubtful Accounts 3,100 Cash 3,100 Accounts Receivable 3,100 EXERCISE 8-3 (Continued) (d) Bad Debts Expense 20,200 Allowance for Doubtful Accounts 20,200 Allowance for Doubtful Accounts Beg. Bal. 9,000 Write-off 7,300 Recovery 3,100 Bad Debts 20,200 End Bal. 25,000 (e) Accounts Receivable Allowance for Doubtful Accounts Beg. Bal. 200,000 Collections 763,000 Beg. Bal. 9,000 Sales 800,000 Write-off 7,300 Write-off 7,300 Recovery 3,100 Recovery 3,100 Collections 3,100 Bad Debts 20,200 End Bal. 229,700 End Bal. 25,000 (f) Net realizable value of receivables is $204,700 ($229,700 – $25,000) EXERCISE 8-5 (a) Accounts Receivable Amount % Estimated Uncollectible Current $65,000 2 $1,300 1–30 days past due 12,900 5 645 31–90 days past due 10,100 30 3,030 Over 90 days past due 7,400 50 3,700 $8,675 (b) Mar. 31 Bad Debts Expense 6,575 Allowance for Doubtful Accounts ...
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...excitement and entertainment. Yet, society also watches horror movies to fulfill their “physiological need”. King states that society needs to watch horror movies in order to release dark fantasies so they don’t act on them and exercise their dark side for their overall all well-being. King introduces the subject of the essay with a shocking statement where he says “..we are all mentally ill” (522). The author utilizes stereotyping in order to convince the reader that his thoughts are not so clean and positive, as the reader thinks. Furthermore, the author wants to prove that watching horror movies is an independent decision and people are willing to dare the “nightmare”(King 522). To further expand on the main reasons why people like horror movies, through the use of metaphor the author...
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...uncontrolled growth (bad) cells. Any abnormal cells are known as tumors, or a benign tumor that doesn’t spread further than their location. Cancer is the leading cause of over 20% of all deaths in the United States of America. Cancer is still being research to this very day so they don’t know what exactly causes the cancer. They do know how to identify people that are at a higher risk of developing specific cancers. It has been proven that a lot of people don’t know about risk factor or evening how to get a screening test done. There are two types of risk factors some you can control and some you can not control. The risk factors you can control is dieting and exercise, tobacco and other chemicals. Dieting alone can help protect your heart rate by eating foods that lower you blood pressure. There are also ways you can contribute to your diet by eating food that have low index carbs like fruit and vegetable. Exercise is also a strong suit that can help lower you risk of become a bladder cancer or any cancer at that. It is a must that you move a round and to stay active whether it at work or at home. Just walking up the stairs can be a good exercise to do everyday just to get your blood pressure and diabetes down. Bladder cancer also comes from holding your urine to long or for a long time period, staying away from sodas and juices play a big role in staying health too. Water is the most important tool to remember when exercise that way you are staying hydrate. Exercise helps stimulate...
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