Resource:  WileyPLUS  Financial Accounting: Tools for Business...

Resource: WileyPLUS 

Financial Accounting: Tools for Business Decision Making, 7th Edition 

Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso
©2013

Complete 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