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Resource: Paul D. Kimmel, Jerry J. Weygandt, Donald E. KiesoComplete
WileyPLUS
Financial Accounting: Tools for Business Decision Making, 7th Edition
©2013
the following Week 1 Assignment in WileyPLUS:
- BYP 8-1 (Please show how you got the answers too)
- BYP 8-2 (Please show how you got the answers too)
Thank you very much for your help.
No. Account Titles and Explanation
Debit
Credit
(a)
(b)
(c)
Description / Instructions:
Complete the following Week 1 Assignment in WileyPLUS: *
Exercise 84 * Exercise 811 * BYP 81 * BYP 82
Question 1
The ledger of Wainwright Company at the end of the current year shows Accounts
Receivable $86,000; Credit Sales $897,000; and Sales Returns and Allowances $52,200.
(Credit account titles are automatically indented when amount is entered. Do
not indent manually.)
(a)
If Wainwright uses the direct writeoff method to account for uncollectible accounts,
journalize the adjusting entry at December 31, assuming Wainwright determines
that Hiller’s $830 balance is uncollectible.
(b)
If Allowance for Doubtful Accounts has a credit balance of $1,000 in the trial balance,
journalize the adjusting entry at December 31, assuming bad debts are expected to
be 11% of accounts receivable.
(c)
If Allowance for Doubtful Accounts has a debit balance of $660 in the trial balance,
journalize the adjusting entry at December 31, assuming bad debts are expected to
be 9% of accounts receivable.
Question 2
Suppose the following information was taken from the 2014 financial statements of
FedEx Corporation
, a major global transportation/delivery company.
(in millions)
2014
2013
Accounts receivable (gross)
$ 3,455
$ 4,385
Accounts receivable (net)
3,434
4,404
Allowance for doubtful accounts
21
19
Sales revenue
35,443
37,801
Total current assets
7,661
7,181
Answer each of the following questions.
Calculate the accounts receivable turnover and the average collection period for 2014 for
FedEx.
(Round answers to 1 decimal place, e.g. 12.5. Use 365 days for
calculation.)
Accounts receivable turnover
times
The average collection period for 2014
days
Is accounts receivable a material component of the company’s total current assets?
Question 3
The financial statements of
Tootsie Roll
are presented below.
TOOTSIE ROLL INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF
Earnings, Comprehensive Earnings and Retained Earnings (in thousands except
per share data)
For the year ended December 31,
2011
2010
2009
Net product sales
$528,369
$517,149
$495,592
Rental and royalty revenue
4,136
4,299
3,739
Total revenue
532,505
521,448
499,331
Product cost of goods sold
365,225
349,334
319,775
Rental and royalty cost
1,038
1,088
852
Total costs
366,263
350,422
320,627
Product gross margin
163,144
167,815
175,817
Rental and royalty gross margin
3,098
3,211
2,887
Total gross margin
166,242
171,026
178,704
Selling, marketing and administrative expenses
108,276
106,316
103,755
Impairment charges
—
—
14,000
Earnings from operations
57,966
64,710
60,949
Other income (expense), net
2,946
8,358
2,100
Earnings before income taxes
60,912
73,068
63,049
Provision for income taxes
16,974
20,005
9,892
Net earnings
$43,938
$53,063
$53,157
Net earnings
$43,938
$53,063
$53,157
Other comprehensive earnings (loss)
(8,740)
1,183
2,845
Comprehensive earnings
$35,198
$54,246
$56,002
Retained earnings at beginning of year.
$135,866
$147,687
$144,949
Net earnings
43,938
53,063
53,157
Cash dividends
(18,360)
(18,078)
(17,790)
Stock dividends
(47,175)
(46,806)
(32,629)
Retained earnings at end of year
$114,269
$135,866
$147,687
Earnings per share
$0.76
$0.90
$0.89
Average Common and Class B Common shares
outstanding
57,892
58,685
59,425
(The accompanying notes are an integral part of these statements.)
CONSOLIDATED STATEMENTS OF
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