Connect Homework 5

Unformatted text preview: Connect Homework 5 Chapter 7 1. The following information relates to a company’s accounts receivable: accounts receivable balance at the beginning of the year, $300,000; allowance for uncollectible accounts at the beginning of the year, $25,000 (credit balance); credit sales during the year, $1,500,000; accounts receivable written off during the year, $16,000; cash collections from customers, $1,450,000. Assuming the company estimates bad debts at an amount equal to 2% of credit sales. 1. Calculate bad debt expense for the year. $30,000 2. Calculate the year-end balance in the allowance for uncollectible accounts. $39,000 2. Logitech Corporation transferred $100,000 of accounts receivable to a local bank. The transfer was made without recourse. The local bank remits 85% of the factored amount to Logitech and retains the remaining 15%. When the bank collects the receivables, it will remit to Logitech the retained amount less a fee equal to 3% of the total amount factored. Logitech estimates a fair value of its 15% interest in the receivables of $11,000 (not including the 3% fee). What is the effect of this transaction on the company’s assets, liabilities, and income before income taxes? Assets decreased by $7,000 Liabilities would not change $0 Income before income taxes decreased by $7,000 3. The controller of the Red Wing Corporation is in the process of preparing the company’s 2013 financial statements. She is trying to determine the correct balance of cash and cash equivalents to be reported as a current asset in the balance sheet. The following items are being considered: a. Balances in the company’s accounts at the First National Bank; checking $14,700, savings $23,300. b. Undeposited customer checks of $6,400. c. Currency and coins on hand of $700. d. Savings account at the East Bay Bank with a balance of $520,000. This account is being used to accumulate cash for future plant expansion (in 2015). e. $44,000 in a checking account at the East Bay Bank. The balance in the account represents a 20% compensating balance for a $220,000 loan with the bank. Red Wing may not withdraw the funds until the loan is due in 2016. f. U.S. Treasury bills; 2-month maturity bills totaling $27,000, and 7-month bills totaling $32,000. Required: 1. Determine the correct balance of cash and cash equivalents to be reported in the current asset section of the 2013 balance sheet....
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Шесть месяцев назад, когда Фонд электронных границ обнародовал информацию о том, что подводная лодка АНБ прослушивает подводные телефонные кабели, Стратмор организовал утечку информации о том, что эта подводная лодка на самом деле занимается незаконным сбросом токсичных отходов.

ФЭГ и экологи так и не смогли установить, какая из двух версий соответствует истине, и средства массовой информации в конце концов устали от всей этой истории и перешли к другим темам.

Каждый шаг Стратмора был рассчитан самым тщательным образом.

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