Assignment #3 <\/p>\n
Problem #1 <\/p>\n
Farm Fresh Produce Co. sells produce wholesale to local groceries on account. The accounts receivable <\/p>\n
department had the following information on December 31, 2009: <\/p>\n
Total Credit sales <\/p>\n
$400,000.00 <\/p>\n
Balance of allowance for doubtful accounts ($950.00) <\/p>\n
Bad debt as a percentage of credit sales 0.50% <\/p>\n
Days Past Due <\/p>\n
Amount <\/p>\n
J Company 34 <\/p>\n
5,000.00 <\/p>\n
H Company 74 <\/p>\n
950.00 <\/p>\n
L Company 18 <\/p>\n
32,000.00 <\/p>\n
T Company 22 <\/p>\n
4,350.00 <\/p>\n
F Company 61 <\/p>\n
2,000.00 <\/p>\n
B Company 145 <\/p>\n
1,750.00 <\/p>\n
Age Class <\/p>\n
Percentage Uncollectible <\/p>\n
0-30 <\/p>\n
2% <\/p>\n
30-60 <\/p>\n
5% <\/p>\n
60-90 <\/p>\n
12% <\/p>\n
90-120 <\/p>\n
20% <\/p>\n
120 <\/p>\n
75% <\/p>\n
Instructions: <\/p>\n
1. Create an aging of receivable report and determine the allowance for doubtful accounts. <\/p>\n
2. Determine the allowance for doubtful accounts based on the percentage of sales method. <\/p>\n
3. Illustrate the effects on the accounts and financial statements using both methods. <\/p>\n
4. Illustrate the effects on the accounts and financial statements assuming Farm Fresh Produce Co. <\/p>\n
wrote off the balance of T Company on April 3, 2010. <\/p>\n
5. Illustrate the effects on the accounts and financial statements assuming that T Company paid off <\/p>\n
its account on May 22, 2010. <\/p>\n
Problem #2 <\/p>\n
Health Guard Labs, a pharmaceutical company, recently purchased a new pill dispensing machine. The <\/p>\n
purchase price was $24,500, the estimated residual value was $10,000, and the estimated useful life is <\/p>\n
five years. Additional expenditures during the first year of use were as follows: <\/p>\n
1. Sales tax $750 <\/p>\n
2. Assembly $450 <\/p>\n
3. Maintenance repairs $2,500 <\/p>\n
4. Replacement parts $3,600 <\/p>\n
5. New battery to increase energy efficiency $670 <\/p>\n
Instructions: <\/p>\n
1. Determine the machine asset value at year end of year one. <\/p>\n
2. Create a depreciation schedule for year one and two for the dispensing machine by using <\/p>\n
the straight line method. <\/p>\n
3. Create a depreciation schedule for year one and two for the dispensing machine by using <\/p>\n
the double declining method. <\/p>\n","protected":false},"excerpt":{"rendered":"
Assignment #3 Problem #1 Farm Fresh Produce Co. sells produce wholesale to local groceries on account. The accounts receivable department had the following information on December 31, 2009: Total Credit sales $400,000.00 Balance of allowance for doubtful accounts ($950.00) Bad debt as a percentage of credit sales 0.50% Days Past Due Amount J Company 34 […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[10],"class_list":["post-63914","post","type-post","status-publish","format-standard","hentry","category-research-paper-writing","tag-writing"],"_links":{"self":[{"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/posts\/63914","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/comments?post=63914"}],"version-history":[{"count":0,"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/posts\/63914\/revisions"}],"wp:attachment":[{"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/media?parent=63914"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/categories?post=63914"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/tags?post=63914"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}