COMPREHENSIVE PROBLEM (Chapters 6‚ 7‚ and 8) Case A Req. 1 (in millions) Allowance for uncollectible accounts (XA‚ +A) 1 ............. Accounts receivable (A)............................................ Req. 2 Cash collections for 2008 2 were $5‚711 million. Allowance for Uncollectible Accounts 20 Beg. 5 Bad debt Write-offs ? expense 13 End. 12 12 Accounts Receivable Beg. 558 Sales 5‚710 ? Collections ? Write-offs End. 545 - = Net Realizable Value 538 532 1 Beg. allowance
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Hundreds of thousands of Chicagoans live in what’s known as a food desert. A food desert is in an area of focus that is short on access to fresh meat and produce. These areas are usually over populated with packaged and processed foods‚ which are not always healthy. They also have a significant amount junk that you can easily find in convenience stores and fast food restaurants. What exactly qualifies a neighborhood to be part of a food desert? Food deserts usually have a bunch of blocks without
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first-out (FIFO): under LIFO the goods purchased last is sold first. The cost of goods sold of 7‚000 units is calculated as
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1.When a specific account receivable is written off‚ the entry A) increases net income. B) decreases net income. C) can either decrease or increase net income. D) has no effect on net income.2.Echo Company’s 2011 beginning and ending accounts receivable balances were $72‚500 and $41‚250 respectively. During 2011‚ the company’s sales (all on credit) amounted to $857‚250. Per Echo’s 2011 cash flow statement‚ $873‚500 was collected from customers while $18‚750 related to uncollectible accounts was
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The same effect is counterproductive in 2009‚ as the prices continue to rise. What approach (FIFO or LIFO) and why would you recommend to Merrimack Mowers if inventory purchase prices and transportation costs had been stable of falling over the two-year period? (For example‚ if Merrimack were a computer assembly firm). Considering available options it
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switched from FIFO to LIFO in accounting for inventory. The preceding year it had switched from the weighted-average method to FIFO. I think it is conflict with accounting theory. First‚ accounting method should not be changed year to year. The company should apply for changing the accounting method by giving some reasonable reasons. After permitted‚ the company can change the method. But it should be indicated. Second‚ if the company uses LIFO for tax purposes‚ it must also use LIFO for financial statement
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of the following is false? WHICH OF THE FOLLOWING IS NOT TRUE. (Hint: One way to answer this is to look at examples of lifo and fifo). Choose one answer. a. Income tax expense will be higher than under LIFO. b. Gross margin will be higher than under LIFO. c. Ending inventory will be lower than under LIFO. d. Cost of goods sold will be lower than under LIFO. e. All of the above are true. 2 Marks: 1 Yoakum Company reported the following information related to
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October 13‚ 2011 330 Inventory 10 Overall 330-10-00 Status Note: General Note The Status Section identifies changes to this Subtopic resulting from Accounting Standards Updates. The Section provides references to the affected Codification content and links to the related Accounting Standards Updates. Nonsubstantive changes for items such as editorial‚ link and similar corrections are included separately in Maintenance Updates. General 330-10-00-1 330- 10-00No updates have been made to
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1.0 Introduction Ryan C. Fuhrmann explains that an investing activity usually refers to cash spent on investments in capital assets such as plant and equipment‚ which is collectively referred to as capital expenditure‚ or capex Its mean that investing activities refer to Assets are resources controlled by company for the purposed of generating profit. The assets can classified into two (2) types- current and noncurrent: (1) Current asset (short term) is resources or claims to resources (balance
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income figure is calculated according to IFRS standards in Europe which demand ‘first-in first-out’ (FIFO) methodology for accounting inventory. Most US companies however produce based on ‘last-in first-out’ (LIFO) accounting. Shell’s current cost of supply (CCS)‚ however‚ are neither FIFO nor LIFO compliant. This means that Shell’s CCS figure are not recognized by US GAAP or IFRS. They are an industry measure only provided for in quarterly results for the benefit of investors. Instead of the FIFO
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