FUND. OF FINANCIAL ACCT. (LL) W/CONNECT
6th Edition
ISBN: 9781260725254
Author: PHILLIPS
Publisher: MCG
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Chapter 8, Problem 2COP
1.
To determine
Calculate the proportion of allowance for doubtful accounts in gross
2.
To determine
Calculate the proportion of bad debt expense in net sales revenue for the Year 5, Year 4, and Year 3.
3.
To determine
Describe whether E Divisions customers take advantage of sales discount in Year 5 than the previous year.
4.
To determine
Calculate and compare the average days to collect the receivables in Year 5 and Year 4.
5.
To determine
Indicate whether it is required to direct an internal audit staff to investigate the receivables management practices of E Divisions.
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Record the following journal entries for Young Company:
(Click the icon to view the transactions.)
(Record debits first, then credits. Select the explanation on the last line of the journal entry table.)
6. Purchased raw materials on account, $5,000.
Date
6.
Accounts Payable
Accounts and Explanation
Debit
Credit
Accounts Receivable
Cash
Cost of Goods Sold
Finished Goods Inventory
Manufacturing Overhead
Raw Materials Inventory
Sales Revenues
Wages Payable
Work-in-Process Inventory
More info
6. Purchased materials on account, $5,000.
7. Used $2,000 in direct materials and $700 in indirect materials in production.
8. Incurred $9,000 in labor costs, of which 60% was direct labor.
Print
Done
- X
The following information pertains to Miller Company for the year
(Click the icon to view the information.)
13.
Calculate the predetermined overhead allocation rate using direct labor hours as the allocation base
14.
Determine the amount of overhead allocated during the year. Record the journal entry.
15.
Determine the amount of underallocated or overallocated overhead. Record the journal entry to adjust Manufacturing Overhead.
Data table
13. Calculate the predetermined overhead allocation rate using direct labor hours as the allocation base
Estimated overhead cost
$
420,000
Estimated direct labor hours
12,000
Predetermined overhead
allocation rate
Estimated manufacturing overhead
Estimated direct labor hours
$420,000
Actual manufacturing overhead
12,000 hours Actual direct labor hours
$500,000
12,650 hours
35
per direct labor hour
14. Determine the amount of overhead allocated during the year. Record the journal entry.
Predetermined overhead allocation rate
35
Actual direct labor…
Problem 3-5B
Applying the accounting cycle
P1 P3 P4 P5 P6
On July 1, Lula Plume created a new self-storage business, Safe Storage Co. The following transactions occurred during the company's first month.
July 2
Plume invested $30,000 cash and buildings worth $150,000 in the company in exchange for its common stock.
3
5
10.
14.
24.
28.
29.
30.
31
The company rented equipment by paying $2,000 cash for the first month's (July) rent.
The company purchased $2,400 of office supplies for cash.
The company paid $7,200 cash for a 12-month insurance policy. Coverage begins on July 11.
The company paid an employee $1,000 cash for two weeks' salary earned.
The company collected $9,800 cash for storage revenue from customers.
The company paid $1,000 cash for two weeks' salary earned by an employee.
The company paid $950 cash for minor repairs to buildings.
The company paid $400 cash for this month's telephone bill.
The company paid $2,000 cash in dividends.
The company's chart of accounts follows:…
Chapter 8 Solutions
FUND. OF FINANCIAL ACCT. (LL) W/CONNECT
Ch. 8 - What are the advantages and disadvantages of...Ch. 8 - Prob. 2QCh. 8 - Which basic accounting principles does the...Ch. 8 - Using the allowance method, is Bad Debt Expense...Ch. 8 - What is the effect of the write-off of...Ch. 8 - How does the use of calculated estimates differ...Ch. 8 - A local phone company had a customer who rang up...Ch. 8 - What is the primary difference between accounts...Ch. 8 - What are the three components of the interest...Ch. 8 - As of May 1, 2016, Krispy Kreme Doughnuts had...
Ch. 8 - Does an increase in the receivables turnover ratio...Ch. 8 - What two approaches can managers take to speed up...Ch. 8 - When customers experience economic difficulties,...Ch. 8 - (Supplement 8A) Describe how (and when) the direct...Ch. 8 - (Supplement 8A) Refer to question 7. What amounts...Ch. 8 - 1. When a company using the allowance method...Ch. 8 - 2. When using the allowance method, as Bad Debt...Ch. 8 - 3. For many years, Carefree Company has estimated...Ch. 8 - 4. Which of the following best describes the...Ch. 8 - 5. If the Allowance for Doubtful Accounts opened...Ch. 8 - 6. When an account receivable is recovered a....Ch. 8 - Prob. 7MCCh. 8 - 8. If the receivables turnover ratio decreased...Ch. 8 - Prob. 9MCCh. 8 - Prob. 10MCCh. 8 - Prob. 1MECh. 8 - Evaluating the Decision to Extend Credit Last...Ch. 8 - Reporting Accounts Receivable and Recording...Ch. 8 - Recording Recoveries Using the Allowance Method...Ch. 8 - Recording Write-Offs and Bad Debt Expense Using...Ch. 8 - Determining Financial Statement Effects of...Ch. 8 - Estimating Bad Debts Using the Percentage of...Ch. 8 - Estimating Bad Debts Using the Aging Method Assume...Ch. 8 - Recording Bad Debt Estimates Using the Two...Ch. 8 - Prob. 10MECh. 8 - Prob. 11MECh. 8 - Recording Note Receivable Transactions RecRoom...Ch. 8 - Prob. 13MECh. 8 - Determining the Effects of Credit Policy Changes...Ch. 8 - Prob. 15MECh. 8 - (Supplement 8A) Recording Write-Offs and Reporting...Ch. 8 - Recording Bad Debt Expense Estimates and...Ch. 8 - Determining Financial Statement Effects of Bad...Ch. 8 - Prob. 3ECh. 8 - Recording Write-Offs and Recoveries Prior to...Ch. 8 - Prob. 5ECh. 8 - Computing Bad Debt Expense Using Aging of Accounts...Ch. 8 - Computing Bad Debt Expense Using Aging of Accounts...Ch. 8 - Recording and Reporting Allowance for Doubtful...Ch. 8 - Recording and Determining the Effects of Write-Off...Ch. 8 - Recording Note Receivable Transactions, Including...Ch. 8 - Recording Note Receivable Transactions, Including...Ch. 8 - Recording Note Receivable Transactions, Including...Ch. 8 - Using Financial Statement Disclosures to Infer...Ch. 8 - Using Financial Statement Disclosures to Infer Bad...Ch. 8 - Prob. 15ECh. 8 - Analyzing and Interpreting Receivables Turnover...Ch. 8 - (Supplement 8A) Recording Write-Offs and Reporting...Ch. 8 - Recording Accounts Receivable Transactions Using...Ch. 8 - Interpreting Disclosure of Allowance for Doubtful...Ch. 8 - Recording Notes Receivable Transactions Jung ...Ch. 8 - Accounting for Accounts and Notes Receivable...Ch. 8 - Analyzing Allowance for Doubtful Accounts,...Ch. 8 - Recording Accounts Receivable Transactions Using...Ch. 8 - Interpreting Disclosure of Allowance for Doubtful...Ch. 8 - Recording Notes Receivable Transactions CS...Ch. 8 - Accounting for Accounts and Notes Receivable...Ch. 8 - Analyzing Allowance for Doubtful Accounts,...Ch. 8 - Recording Accounts Receivable Transactions Using...Ch. 8 - Prob. 2PBCh. 8 - Prob. 3PBCh. 8 - Accounting for Accounts and Notes Receivable...Ch. 8 - Analyzing Allowance for Doubtful Accounts,...Ch. 8 - Recording and Reporting Credit Sales and Bad Debts...Ch. 8 - Prob. 2COPCh. 8 - Recording Daily and Adjusting Entries Using FIFO...Ch. 8 - Prob. 1SDCCh. 8 - Prob. 2SDCCh. 8 - Ethical Decision Making: A Real-Life Example You...Ch. 8 - Critical Thinking: Analyzing the Impact of Credit...Ch. 8 - Using an Aging Schedule to Estimate Bad Debts and...Ch. 8 - Accounting for Receivables and Uncollectible...
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