The ledger of Cheyenne Company at the end of the current year shows Accounts Receivable $77,000, Credit Sales $810,000, and Sales Returns and Allowances $41,300. Prepare journal entries for each separate scenario below. (a) If Cheyenne uses the direct write-off method to account for uncollectible accounts, journalize the entry at December 15 if Cheyenne determines that Matisse’s $900 balance is uncollectible. (b) If Allowance for Doubtful Accounts has a credit balance of $900 in the trial balance, journalize the adjusting entry at December 31, assuming uncollectibles are expected to be 10% of accounts receivable. (c) If Allowance for Doubtful Accounts has a debit balance of $496 in the trial balance, journalize the adjusting entry at December 31, assuming uncollectibles are expected to be 9% of accounts receivable.

Answer:

a. Dec 15

Dr Bad debt expense $900

Cr Account receivable $900

b. Dec 31

Dr Bad debt expense $6,800

Cr Allowance for doubtful accounts $6,800

c. Dec 31

Dr Bad debt expense $7,426

Cr Allowance for doubtful accounts $7,426

Explanation:

Preparation of the journal entries

a. Preparation of the journal entry at December 15 if Cheyenne determines that Matisse’s $900 balance is uncollectible.

Dec 15 Bad debt expense $900

Account receivable $900

b. Preparation of the adjusting entry at December 31, assuming uncollectibles are expected to be 10% of accounts receivable

Dec 31

Dr Bad debt expense $6,800

Cr Allowance for doubtful accounts $6,800

[($77,000 x 10%) - $900]

c. Preparation of the adjusting entry at December 31, assuming uncollectibles are expected to be 9% of accounts receivable

Dec 31

Dr Bad debt expense $7,426

Cr Allowance for doubtful accounts $7,426

($77,000*9%+496)

Racing Bikes $929,000 $266,000 $409,000 254,000 Dirt Mountain Bikes Total Bikes Sales Variable manufacturing and selling 467,000 116,000 197,000 154,000 expenses Contribution margin Fixed expenses: Advertising, traceable Depreciation of special equipment Salaries of product-line managers Allocated common fixed expenses Total fixed expenses 462,000 150,000 212,000 100,000 70,200 44,000 115,900 185, 800 20,800 15,400 36,700 50,800 123,700 $ 46,100 $ 26,400 $43,400 $ (23,700) 8,800 40,600 7,600 38,600 81,800 168,600 21,000 40,600 53,200 123,600 415,900 Net operating income (loss) "Allocated on the basis of sales dollars Management is concerned about the continued losses shown by the racing bikes and wants a recommendation as to whether or not the line should be discontinued. The special equipment used to produce racing bikes has no resale value and does not wear out Required: 1. What is the financial advantage (disadvantage) per quarter of discontinuing the Racing Bikes? 2. Should the production and sale of racing bikes be discontinued? 3. Prepare a properly formatted segmented income statement that would be more useful to management in assessing the long-run profitability of the various product lines. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare a properly formatted segmented income statement that would be more useful to management in assessing the long- run profitability of the various product lines. Totals Dirt Bikes Mountain Bikes Racing Bikes Sales Variable manufacturing and selling expenses Contribution margin (loss) 0 0 Traceable fixed expenses: Advertising, traceable Depreciation of special equipment Salaries of the product line managers Total traceable fixed expenses 0 0 0 Product line seament marain (loss) ol $

Adam Ant lives in the country of Petertopia, which has a tax rate of 5% on the first $20,000 in taxable income, 10% on the next $40,000 in taxable income, and 15% on all taxable income above $60,000. Petertopia allows a standard deduction of $12,200 for single taxfilers, and $24,400 for married taxfilers. There are no other tax deductions or credits available. Adam has gross income of $35,000. As a single person, he takes a standard deduction of $12,200. Adam's taxable income is $________ his marginal tax rate is ______% and his total taxes due are $ ________(Please only enter numbers in the blanks. Round your answers to 2 decimal places if necessary.)

A manufacturing process consists of three processes. Step 1 requires 10 minutes per unit, step 2 requires 6 minutes per unit and step 3 requires 7 minutes per unit. 40% of units that complete the third step require rework, which means those units must start the process over at step 2 (processing times are the same for units being reworked) and rework is always successful. Demand at the shop is 0.4 units per minute.What is the capacity of the shop (in units per units per minute)?

plies manufacturing overhead at the rate of $40 per machine hour. Budgeted machine hours for the current period were anticipated to be 120,000; however, a lengthy strike resulted in actual machine hours being worked of only 90,000. Budgeted and actual manufacturing overhead figures for the year were $4,800,000 and $4,180,000, respectively. On the basis of this information, the company's year-end overhead was:

If business property or property held for the production of income is destroyed, the loss is equal to the adjusted basis of the property at the time of destruction.

a. True
b. False

Single Plantwide Factory Overhead Rate Scrumptious Snacks Inc. manufactures three types of snack foods: tortilla chips, potato chips, and pretzels. The company has budgeted the following costs for the upcoming period: Factory depreciation $9,472 Indirect labor 23,475 Factory electricity 2,677 Indirect materials 5,560 Selling expenses 13,179 Administrative expenses 7,413 Total costs $61,776 Factory overhead is allocated to the three products on the basis of processing hours.The products had the following production budget and processing hours per case: Budgeted Processing Hours Volume (Cases) Per Case Tortilla chips 3,000 0.25 Potato chips 6,000 0.10 Pretzels 3,500 0.30 Total 12,500 If required, round all per unit answers to the nearest cent. Determine the single plantwide factory overhead rate. $ 86.25 X per processing hour.

Urban Drapers Inc., a drapery company, has been successfully doing business for the past 15 years. It went public eight years ago and has been paying out a constant dividend of $2.24 per share every year to its shareholders. In its most recent annual report, the company informed investors that it expects to maintain its constant dividend into the foreseeable future and that dividends are not expected to increase.

If you are an investor who requires a 25.50% rate of return and you expect dividends to remain constant forever, then your expected valuation for Urban Drapers stock today is ________ per share. Urban Drapers has a sister company named Super Carpeting Inc. (SCI). SCI just paid a dividend (D_0) of $2.64 per share, and its annual dividend is expected to grow at a constant rate (g) of 5.50% per year. If the required return (r_s) on SCI's stock is 13.75%, then the intrinsic value of SCI's shares is _______ per share.

Hubert lives in New York City and runs a business that sells boats. In an average year, he receives $723,000 from selling boats. Of this sales revenue, he must pay the manufacturer a wholesale cost of $423,000; he also pays wages and utility bills totaling $267,000. He owns his showroom; if he chooses to rent it out, he will receive $2,000 in rent per year. Assume that the value of this showroom does not depreciate over the year. Also, if Hubert does not operate this boat business, he can work as a financial advisor, receive an annual salary of $20,000 with no additional monetary costs, and rent out his showroom at the $2,000 per year rate. No other costs are incurred in running this boat business.

Identify each of Darnell's costs given below as either an implicit cost or an explicit cost of selling pianos.

a. The rental income Darnell could receive if he chose to rent out his showroom
b. The wages and utility bills that Darnell pays
c. The salary Darnell could earn if he worked as a financial advisor
d. The wholesale cost for the pianos that Darnell pays the manufacturer

Kayak Co. budgeted the following cash receipts (excluding cash receipts from loans received) and cash payments (excluding cash payments for loan principal and interest payments) for the first three months of next year. Cash Receipts Cash payments January $ 518,000 $ 461,500 February 403,000 346,500 March 467,000 523,000 According to a credit agreement with its bank, Kayak requires a minimum cash balance of $50,000 at each month-end. In return, the bank has agreed that the company can borrow up to $150,000 at a monthly interest rate of 1%, paid on the last day of each month. The interest is computed based on the beginning balance of the loan for the month. The company repays loan principal with any cash in excess of $50,000 on the last day of each month. The company has a cash balance of $50,000 and a loan balance of $100,000 at January 1. Prepare monthly cash budgets for January, February, and March. (Negative balances and Loan repayment amounts (if any) should be indicated with minus sign.)

The following data were gathered to use in reconciling the bank account of Lays Company: Balance per bank $ 18,550 Balance per company records 10,030 Bank service charges 40 Deposit in transit 3,050 Note collected by bank with $190 interest 4,750 Outstanding checks 6,860 a. What is the adjusted balance on the bank reconciliation

How can you make positive economic choices?

The process of developing budget estimates by requiring all levels of management to estimate sales, production, and other operating data as though operations were being initiated for the first time is referred to as a.master budgeting b.continuous budgeting c.zero-based budgeting d.flexible budgeting

In 2013 cumulative preferred shareholders should have received a dividend of $10,000, but the company didn't pay a dividend. In 2014 the preferred shareholders should receive a distribution of $11,000. If the company pays $50,000 in 2014 of dividends how much will the preferred shareholders receive

Manufacturing cost data for Orlando Company, which uses a job order cost system, are presented below. Indicate the missing amount for each letter. Assume that in all cases manufacturing overhead is applied on the basis of direct labor cost and the rate is the same. (Round overhead rate to 2 decimal places, e.g. 15.25 and final answers to 0 decimal places, e.g. 5,275.)



Case A Case B Case C
Direct materials used $ (a) $91,200 $69,000
Direct labor 52,200 143,800 (h)
Manufacturing overhead applied 42,804 (d) (i)
Total manufacturing costs 149,800 (e) 216,100
Work in process 1/1/14 (b) 21,300 18,400
Total cost of work in process 208,600 (f) (j)
Work in process 12/31/14 (c) 11,900 (k)
Cost of goods manufactured 193,500 (g) 232,600

What is the net present value of a project with the following cash flows if the required rate of return is 9 percent? Year Cash Flow 0 -$42,398 1 18,201 2 21,219 3 17,800 Group of answer choices -$1,574.41 -$1,208.19 $5,904.64 $6,029.09 $6,311.16

Annenbaum Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 400 units. The costs and percentage completion of these units in beginning inventory were: Cost Percent Complete Materials costs $ 5,700 65% Conversion costs $ 6,800 45% A total of 6,500 units were started and 5,900 units were transferred to the second processing department during the month. The following costs were incurred in the first processing department during the month: Cost Materials costs $ 125,500 Conversion costs $ 207,000 The ending inventory was 50% complete with respect to materials and 35% complete with respect to conversion costs. The total cost transferred from the first processing department to the next processing department during the month is closest to: (Round your intermediate calculations to 3 decimal places.)

In the late 1800s, how did railroad monopolies create economic hardships for farmers?A. By claiming productive land for business leaders to developB. By charging high prices to ship agricultural goods to marketC. By separating farmers from profitable markets in western citiesD. By isolating farmers from technological developments in eastern cities

what is marketing shortly ​

In 2006, Lego laid off 1,200 workers and ended production in the U.S.. The company contracted out production of basic Lego bricks to Singapore-based electronics manufacturer Flextronics, which operates factories in Mexico and eastern Europe. Which two of the ten operations management decision types were addressed by this decision

Which of the statements is true of the prisoner's dilemma? In the game that includes two prisoners, from which this game derives its name, neither prisoner will confess and they will both walk free. The prisoner's dilemma is an example of a cooperative equilibrium. In the prisoner's dilemma, firms could do better if they both did exactly the opposite of what they ultimately choose to do. One player has a dominant strategy and the other has a mixed strategy.

Select the correct answer.
Which of these trainings does the hospitality certification provide?
OA. ensures the safety of the food served
OB. safely serve alcohol to other individuals
OC. food has been produced and handled according to the recognized standards
OD. create the ultimate experience

Pension data for David Emerson Enterprises include the following:
($ in millions)
Discount rate, 10%
Projected benefit obligation, January 1 $320
Projected benefit obligation, December 31 500
Accumulated benefit obligation, January 1 335
Accumulated benefit obligation, December 31 450
Cash contributions to pension fund, December 31 185
Benefit payments to retirees, December 31 61
Required:
Assuming no change in actuarial assumptions and estimates, determine the service cost component of pension expense for the year ended December 31.

During 2020, Sam and Libby, a married couple, decided to sell their residence, which had a basis of $200,000. They had owned and occupied the residence for 20 years. To make it more attractive to prospective buyers, they had the inside painted in April at a cost of $5,000 and paid for the work immediately. They sold the house in May for $800,000. Broker's commissions and other selling expenses amounted to $50,000. The couple purchased a new residence in July for $400,000. What is the recognized gain and the adjusted basis of the new residence

The notes to a recent annual report from Weebok Corporation indicated that the company acquired another company, Sport Shoes, Inc. Assume that Weebok acquired Sport Shoes on January 5 of the current year. Weebok acquired the name of the company and all of its assets for $511,000 cash. Weebok did not assume the liabilities. The transaction was closed on January 5 of the current year, at which time the balance sheet of Sport Shoes reflected the following book values and an independent appraiser estimated the following market values for the assets:

Sport Shoes, Inc.
January 5 of the Current Year Book Value Market Value
Accounts receivable (net) $35,000 $35,000
Inventory 210,000 183,000
Fixed assets (net) 23,000 46,500
Other assets 10,000 16,000
Total Assets $278,000
Liabilities $72,000
Stockholders' equity 206,000

Market values for the purchased assets were provided to Weebok by an independent appraiser.

Required:
Compute the amount of goodwill resulting from the purchase.

Chapter 4
Analysis of Financial Statements
Problem 4-1 page 112
DAYS SALES OUTSTANDING Baker Brothers has a DSO of 40 days, and its annual sales are
$7,300,000. What is its accounts receivable balance? Assume that it uses a 365-day year.​

The following transactions were completed by The Wild Trout Gallery during the current fiscal year ended December 31: Jan. 19. Reinstated the account of Arlene Gurley, which had been written off in the preceding year as uncollectible. Journalized the receipt of $1,935 cash in full payment of Arlene’s account. Apr. 3. Wrote off the $11,090 balance owed by Premier GS Co., which is bankrupt. July 16. Received 25% of the $19,900 balance owed by Hayden Co., a bankrupt business, and wrote off the remainder as uncollectible. Nov. 23. Reinstated the account of Harry Carr, which had been written off two years earlier as uncollectible. Recorded the receipt of $3,155 cash in full payment. Dec. 31. Wrote off the following accounts as uncollectible (one entry): Cavey Co.,$8,340; Fogle Co., $2,475; Lake Furniture, $6,365; Melinda Shryer, $1,800. Dec. 31. Based on an analysis of the $979,800 of accounts receivable, it was estimated that $42,600 will be uncollectible. Journalized the adjusting entry.

Discuss the negative impact of piracy on businesses.​

If two countries have identical production possibility frontiers, then A. there is no scope for trade B. they have different opportunity costs of production. C. there is a set of prices at which both countries will gain from trade D. they have identical marginal products of labor

The world price of a liter of vodka is$7.00. While the distillation is done domestically, some of the grainsand materials for the bottle are imported. The value of imported components is$2.00. Assume that thereis no tariff on imported components used to make vodka.a) (1 points) What is the NRP for vodka if there is a tariff of$3.00

A holiday sales flyer advertised a video game system for a significantly reduced price and
video game with purchase. Later that day, the sales associate told you that the store is out of
both items. Instead, you were offered a different system and games at full retail prices. What is this type of fraud called?