10-26-10case1&2

10-26-10case1&2 - because their net income was less due...

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Leah Celani October 26, 2010 Chapter 7 Case 1 a.) Target has a more affluent customer base compared to its competitors such as Wal-Mart. This in turn causes Target to have more exposure to credit cards than other retailers because more customers are making purchases with credit cards. Having more credit card purchases causes an increase in accounts receivable. Furthermore, Target only sold have of their receivables last spring while most retailers sold their entire portfolio years prior. b.) Allowance for Doubtful Accounts d.) Target’s bad debt expense for the period was $314 million. There would be less stockholders’ equity
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Unformatted text preview: because their net income was less due to this. Case 2 b.) Cadburys financial statements are in sterling pounds which are used in the United Kingdom. c.) Deloitte & Touche LLP in London signed Cadburys audit opinion. d.) They are filed in accordance with the International Financial Reporting Standards (IFRSs) e.) They present their non-current assets prior to their current assets and also provide the previous years balances to compare. f.) Debit bad debt expense Credit allowance for doubtful accounts Debit sales Credit accounts receivable...
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This note was uploaded on 11/29/2010 for the course ACC 331 taught by Professor Dr.lee during the Fall '10 term at Jefferson College.

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