Landry Marine is a national distributor of boat parts and supplies. Landry Marine’s customers include the following categories of stores: locally owned, small regional chains, large regional chains, and national chains. Landry Marine’s chief executive officer (CEO), Gene O’Neil, has requested your assistance in helping him further understand the company’s credit sales, including collectability of accounts receivable and returns by customer type. Specifically, Gene O’Neil has asked you to answer the following questions based on the dataset provided: 1. What are the average days’ sales in receivables by customer type? Assume that Landry Marine’s credit terms are n/30 for all customers. 2. What are write-offs by customer type, in dollars and as a percent of credit sales? 3. What are returns as a percent of credit sales by customer type? 4. How could the CEO, Gene O’Neil, use the preceding analyses in managing Landry Marine? Go to CengageNOWv2 to complete this assignment.
> Hibbett Sports, Inc. (HIBB) is a sporting goods retailer with locations primarily in the Southeast, Southwest, and Midwest United States. Dick’s Sporting Goods, Inc. (DKS) is a leading full-line retailer of sporting equipment and appare
> Captivating Inc. is a motivational consulting business. At the end of its accounting period, May 31, 20Y2, Captivating Inc. has assets of $2,450,000 and liabilities of $1,180,000. Using the accounting equation and considering each case independently, det
> Neiman Marcus Group (NMG) is one of the largest luxury fashion retailers in the world. Kohl’s Corporation (KSS) sells moderately priced private and national branded products through more than 1,100 department stores located throughout t
> The Hershey Company (HSY) is the largest producer of chocolate in North America under the Hershey’s and Reese’s brand names. The following balance sheet information is provided at the end of three recent years (in thou
> Abercrombie & Fitch Co. (ANF) and The Gap, Inc. (GPS) are two U.S. apparel retailers. The current assets and current liabilities for each company from recent balance sheets are as follows (in thousands): a. Compute the working capital for each comp
> General Motors Corporation (GM) reported $7.8 billion of product warranties in the “Current liabilities” section of a recent balance sheet. How would costs of repairing a defective product be recorded?
> A business issued a 90-day, 6% note for $80,000 to a creditor on account. Journalize the entries to record (a) the issuance of the note and (b) the payment of the note at maturity, including interest.
> Bennett Enterprises issues a $600,000, 120-day, 4% note to Spectrum Industries for merchandise inventory. a. Journalize Bennett Enterprises’ entries to record: 1. The issuance of the note. 2. The payment of the note at maturity. b. Journalize Spectrum In
> Bon Nebo Co. sold 40,000 annual subscriptions of Bjorn for $60 during December 20Y5. These new subscribers will receive monthly issues, beginning in January 20Y6. In addition, the business had taxable income of $920,000 during the first calendar quarter
> Fosters Manufacturing Co. warrants its products for one year. The estimated product warranty is 2% of sales. Assume that sales were $1,800,000 for January. On February 7, a customer received warranty repairs requiring $375 of parts and $140 of labor. a.
> In a recent year’s financial statements, Procter & Gamble (PG) showed an unfunded pension liability of $5,622 million and a periodic pension cost of $139 million. Explain the meaning of the $5,622 million unfunded pension liability and the $139 million p
> Widmer Company had gross wages of $350,000 during the week ended June 17. The amount of wages subject to social security tax was $350,000, while the amount of wages subject to federal and state unemployment taxes was $52,500. Tax rates are as follows: Th
> eCatalog Services Company performed services in October for a specific customer, for a fee of $7,890. Payment was received the following November. (a) Was the revenue earned in October or November? (b) What accounts should be debited and credited in (1)
> Using the following data for A-One Travel Service as well as the statement of stockholders’ equity from Basic Exercise 1-5, prepare a balance sheet as of August 31, 20Y6:
> The payroll register for D. Salah Company for the week ended May 18 indicated the following: The salaries were all subject to the 6.0% social security tax and the 1.5% Medicare tax. In addition, state and federal unemployment taxes were computed at the r
> According to a summary of the payroll of Mountain Streaming Co., $120,000 was subject to the 6.0% social security tax and the 1.5% Medicare tax. Also, $30,000 was subject to state and federal unemployment taxes. a. Determine the employer’s payroll taxes,
> K. Mello Company has three employees—a consultant, a computer programmer, and an administrator. The following payroll information is available for each employee: For the current pay period, the computer programmer worked 46 hours and th
> An employee earns $25 per hour and 1.5 times that rate for all hours in excess of 40 hours per week. If the employee worked 52 hours during the week, determine the employee’s (a) gross pay and (b) net pay for the week. Assume that the social security tax
> PepsiCo, Inc. (PEP) reported the following information about its long-term debt in the notes to a recent financial statement (in millions): a. How much of the long-term debt was disclosed as a current liability on the current year’s D
> Regling Company provides its employees vacation benefits and a defined benefit pension plan. Employees earned vacation pay of $25,000 for the period. The pension formula determined a pension cost of $139,250. Only $105,000 was contributed to the pension
> The payroll register of Heritage Co. indicates $4,800 of social security withheld and $1,200 of Medicare tax withheld on total salaries of $80,000 for the period. Earnings of $14,000 are subject to state and federal unemployment compensation taxes at the
> The payroll register of Heritage Co. indicates $4,800 of social security withheld and $1,200 of Medicare tax withheld on total salaries of $80,000 for the period. Federal withholding for the period totaled $17,540. Retirement savings withheld from employ
> Lindsey Vater’s weekly gross earnings for the week ended March 9 were $1,200, and her federal income tax withholding was $193.44. Assuming the social security tax rate is 6% and Medicare tax is 1.5% of all earnings, what is Lindsey’s net pay?
> On January 26, Nyree Co. borrowed cash from Conrad Bank by issuing a 45-day note with a face amount of $300,000. a. Determine the proceeds of the note, assuming the note carries an interest rate of 6%. b. Determine the proceeds of the note, assuming th
> McIntyre Company adheres to a policy of depositing all cash receipts in a bank account and making all payments by check. The cash account as of December 31 has a credit balance of $1,850, and there is no undeposited cash on hand. (a) Assuming no errors
> Inject Solutions, LLC is a provider of finished plastic molding injection products to different industries. Inject Solutions works primarily with customers in the automobile, medical devices, and consumer toy manufacturing industries. With a fleet of 13
> Obtain McDonald’s most recent annual report on Form 10-K. The Form 10-K is a company’s annually required filing with the Securities and Exchange Commission (SEC). It includes the company’s financial statements and accompanying notes. The Form 10-K can be
> Data related to the acquisition of timber rights and intangible assets during the current year ended December 31 are as follows: a. Timber rights on a tract of land were purchased for $1,600,000 on February 22. The stand of timber is estimated at 5,000,0
> The following transactions and adjusting entries were completed by Legacy Furniture Co. during a 3-year period. All are related to the use of delivery equipment. The double-declining-balance method of depreciation is used. Year 1 Jan. 4. Purchased a us
> Dexter Industries purchased packaging equipment on January 8 for $81,900. The equipment was expected to have a useful life of 3 years, or 20,000 operating hours, and a residual value of $4,500. The equipment was used for 7,600 hours during Year 1, 6,000
> Alaska Air Group (ALK), Delta Air Lines (DAL), and Southwest Airlines (LUV) reported the following financial information (in millions) in a recent year: a. Determine the fixed asset turnover ratio for each airline. Round to one decimal place. b. Based
> Amazon.com, Inc. (AMZN) is the world’s leading Internet retailer of merchandise and media. Amazon also designs and sells electronic products, such as e-readers. Netflix, Inc. (NFLX) is one of the world’s leading Intern
> The following table shows the sales and average book value of fixed assets for three different companies from three different industries for a recent year: a. For each company, determine the fixed asset turnover ratio. Round to one decimal place. b. Ex
> FedEx Corporation (FDX) and United Parcel Service, Inc. (UPS) compete in the package delivery business. The major fixed assets for each business include aircraft, sorting and handling facilities, delivery vehicles, and information technology. The sales a
> Verizon Communications Inc. (VZ) is a major telecommunications company in the United States. Two recent balance sheets for Verizon disclosed the following information regarding fixed assets: Verizon’s revenue for the year was $131,868 m
> Do the terms debit and credit signify increase or decrease or can they signify either? Explain.
> Apple Inc. (AAPL) designs, manufactures, and markets personal computers and related software. Apple also manufactures and distributes music players (iPod), mobile phones (iPhone), and smart watches (Apple Watch) along with related accessories and service
> Equipment acquired on January 6 at a cost of $425,000 has an estimated useful life of 20 years and an estimated residual value of $35,000. a. What was the annual amount of depreciation for Years 1–3 using the straight-line method of depreciation? b. What
> A building with a cost of $2,200,000 has an estimated residual value of $85,000, has an estimated useful life of 40 years, and is depreciated by the straight-line method. (a) What is the amount of the annual depreciation? (b) What is the book value at th
> A Kubota tractor acquired on January 8 at a cost of $90,000 has an estimated useful life of 10 years. Assuming that it will have no residual value, determine the depreciation for each of the first 2 years (a) by the straight-line method and (b) by the do
> A diesel-powered tractor with a cost of $115,000 and an estimated residual value of $10,000 is expected to have a useful operating life of 28,000 hours. During April, the tractor was operated 160 hours. Determine the depreciation for the month.
> A refrigerator used by a wholesale warehouse has a cost of $85,000, an estimated residual value of $4,200, and an estimated useful life of 8 years. What is the amount of the annual depreciation computed by the straight-line method?
> Tri-City Ironworks Co. reported $65,500,000 for equipment and $33,415,000 for accumulated depreciation— equipment on its balance sheet. Does this mean (a) that the replacement cost of the equipment is $65,500,000 and (b) that $33,415,000 is set aside in
> On-Time Delivery Company acquired an adjacent lot to construct a new warehouse, paying $60,000 in cash and giving a short-term note for $100,000. Legal fees paid were $1,250, delinquent taxes assumed were $10,000, and fees paid to remove an old building
> A building acquired at the beginning of the year at a cost of $1,800,000 has an estimated residual value of $200,000 and an estimated useful life of 20 years. Determine (a) the depreciable cost, (b) the straight-line rate, and (c) the annual straight-lin
> Equipment was acquired at the beginning of the year at a cost of $800,000. The equipment was depreciated using the double-declining-balance method based on an estimated useful life of 10 years and an estimated residual value of $60,000. a. What was the d
> What is the difference between an account and a ledger?
> A building acquired at the beginning of the year at a cost of $3,850,000 has an estimated residual value of $150,000 and an estimated useful life of 40 years. Determine (a) the double-declining balance rate and (b) the double-declining-balance depreciati
> A truck acquired at a cost of $60,000 has an estimated residual value of $2,000, has an estimated useful life of 200,000 miles, and was driven 15,000 miles during the year. Determine (a) the depreciable cost, (b) the depreciation rate, and (c) the units-
> Obtain Under Armour, Inc.’s (UAA) most recent annual report on Form 10-K. The Form 10-K is a company’s annually required filing with the Securities and Exchange Commission (SEC). It includes the company’s financial statements and accompanying notes. The
> Ralph Lauren Corporation (RL) designs, markets, and distributes a variety of apparel, home décor, accessory, and fragrance products. The company’s products include such brands as Ralph Lauren, Polo by Ralph Lauren, and Chap
> Amazon.com, Inc. (AMZN) is one of the largest Internet retailers in the world. Best Buy, Inc. (BBY) is a leading retailer of consumer electronics and media products in the United States. Amazon and Best Buy compete in similar markets; however, Best Buy s
> DISH Network Corporation (DISH) provides satellite-based entertainment services to residential and business customers. Services are billed and collected on a monthly basis. DISH Network reported the following (in millions) for two recent years: a. Dete
> L Brands, Inc. (LB) sells women’s clothing and personal health care products through specialty retail stores including Victoria’s Secret and Bath & Body Works stores. L Brands reported the following (in millions) f
> MGM Resorts International (MGM) owns and operates hotels and casinos including the MGM Grand and the Bellagio in Las Vegas, Nevada. As of a recent year, MGM reported accounts receivable of $707,278,000 and allowance for doubtful accounts of $94,561,000.
> The Boeing Company (BA) is one of the world’s major aerospace firms with operations involving commercial aircraft, military aircraft, missiles, satellite systems, and information and battle management systems. As of a recent year, Boeing had $1,121 milli
> Checking accounts are one of the most common forms of deposits for banks. Assume that Surety Storage has a checking account at Ada Savings Bank. What type of account (asset, liability, Stockholders’ equity, revenue, expense, dividends) does the account b
> Determine the due date and the amount of interest due at maturity on the following notes:
> Using the data in Exercise 8-11, assume that the allowance for doubtful accounts for Outlaw Bike Co. had a debit balance of $6,225 as of December 31. Journalize the adjusting entry for uncollectible accounts as of December 31.
> Toot Auto Supply distributes new and used automobile parts to local dealers throughout the Midwest. Toot’s credit terms are n/30. As of the end of business on October 31, the following accounts receivable were past due: Determine the
> At the end of the current year, the accounts receivable account has a debit balance of $1,935,000 and sales for the year total $26,710,000. Determine the amount of the adjusting entry to provide for doubtful accounts under each of the following assumptio
> Creative Solutions Company, a computer consulting firm, has decided to write off the $15,220 balance of an account owed by a customer, Wil Treadwell. Journalize the entry to record the write- off, assuming that (a) the direct write-off method is used and
> Journalize the following transactions in the accounts of Zippy Interiors Company, a restaurant supply company that uses the allowance method of accounting for uncollectible receivables: May 24. Sold merchandise on account to Old Town Cafe, $27,250. The c
> Journalize the following transactions in the accounts of Canyon River Medical Co., a medical equipment company that uses the direct write-off method of accounting for uncollectible receivables: Jan. 19. Sold merchandise on account to Dr. Kyle Norby, $5,0
> Journalize the following transactions, using the direct write-off method of accounting for uncollectible receivables: Mar. 17. Received $325 from Shawn McNeely and wrote off the remainder owed of $500 as uncollectible. July 29. Reinstated the account of
> Prefix Supply Company received a 120-day, 6% note for $500,000, dated April 12 from a customer on account. a. Determine the due date of the note. b. Determine the maturity value of the note. c. Journalize the entry to record the receipt of the payment of
> At the end of the current year, Accounts Receivable has a balance of $5,125,000; Allowance for Doubtful Accounts has a debit balance of $32,600; and sales for the year total $105,550,000. Using the aging method, the balance of Allowance for Doubtful Acco
> Assume that Sunshine Realty Co. borrowed $300,000 from Columbia First Bank and Trust. In recording the transaction, Sunshine erroneously recorded the receipt as a debit to Cash, $300,000, and a credit to Fees Earned, $300,000. (a) How would this error af
> At the end of the current year, Accounts Receivable has a balance of $5,125,000; Allowance for Doubtful Accounts has a debit balance of $32,600; and sales for the year total $105,550,000. Bad debt expense is estimated at ¼ of 1% of sales. Determine (a)
> Journalize the following transactions, using the allowance method of accounting for uncollectible receivables: Mar. 17. Received $325 from Shawn McNeely and wrote off the remainder owed of $500 as uncollectible. July 29. Reinstated the account of Shawn M
> Obtain eBay’s most recent annual report on Form 10-K. The Form 10-K is a company’s annually required filing with the Securities and Exchange Commission (SEC). It includes the company’s financial statements and accompanying notes. The Form 10-K can be obt
> Johnson’s Mercantile is a chain retailer with stores located across Virginia, D.C., and Maryland. Recently, Johnson’s Mercantile has implemented new control measures in some of its stores to reduce its inventory losses. Management randomly selected store
> Wyoming Restoration Company completed the following selected transactions during July 20Y1: July 1. Established a petty cash fund of $1,200. 12. The cash sales for the day, according to the cash register records, totaled $8,356. The actual cash received
> The cash account for Coastal Bike Co. at October 1, 20Y9, indicated a balance of $5,140. During October, the total cash deposited was $39,175, and checks written totaled $40,520. The bank statement indicated a balance of $8,980 on October 31, 20Y9. Compa
> Amazon.com, Inc. (AMZN) is one of the largest Internet retailers in the world. Netflix, Inc. (NFLX) provides digital streaming and DVD rentals in the United States. Amazon and Netflix compete in streaming and digital services; however, Amazon also sells
> Restaurant Brands International Inc. (QSR) is one of the world’s largest quick service restaurant companies. Its brands include Tim Horton’s, Burger King, and Popeyes. Dunkin’ Brands Group, Inc. (DNKN
> Apache Corporation (APA) is an independent energy company that explores, develops, and produces oil and gas products. Apache operates worldwide, including in the United States, Canada, and the North Sea. The profitability of the oil and gas business is h
> J. C. Penney Company, Inc. (JCP) and Macy’s, Inc. (M) are large department store chains in the United States. Information from recent annual reports for both companies is as follows (in millions): a. Determine the daysâ€
> Assume that Muscular Consulting erroneously recorded the payment of $7,500 of dividends as a debit to Salary Expense. (a) How would this error affect the equality of the trial balance? (b) How would this error affect the income statement, statement of
> The actual cash received from cash sales was $78,956, and the amount indicated by the cash register total was $78,995. Journalize the entry to record the cash receipts and cash sales.
> The actual cash received from cash sales was $285,280, and the amount indicated by the cash register total was $285,050. Journalize the entry to record the cash receipts and cash sales.
> Acme Auto Parts, Inc. sells automobile parts, maintenance items, and accessories to repair garages and service stations. A major focus of Acme Auto’s business strategy is to provide customers with their ordered parts no later than 48 hours from when an
> Obtain Best Buy Co., Inc.’s (BBY) most recent annual report on Form 10-K. The Form 10-K is a company’s annually required filing with the Securities and Exchange Commission (SEC). It includes the company’s financial statements and accompanying notes. Th
> Darden Restaurants, Inc. (DRI) is the largest full-service restaurant company in the world. It operates over 2,200 restaurants under a variety of brand names, including Olive Garden, Bahama Breeze, and LongHorn Steakhouse. Chipotle Mexican Grill, Inc. (
> Amazon.com, Inc. (AMZN) is one of the largest Internet retailers in the world. Target Corporation (TGT) is one of the largest value-priced general merchandisers operating in the United States. Target sells through nearly 1,800 brick-and-mortar stores a
> Monster Beverage Corporation (MNST) develops, markets, and sells energy and other alternative beverage brands. Brown-Forman Corporation (BF.B) manufactures and sells a wide variety of spirit and wine beverages, such as Jack Daniel’s&A
> The general merchandise retail industry has a number of segments represented by the following companies: For a recent year, the following cost of goods sold and beginning and ending inventories are provided from corporate annual reports (in millions) fo
> The following units of an item were available for sale during the year: The firm uses the perpetual inventory system, and there are 7,700 units of the item on hand at the end of the year. What is the total cost of the ending inventory according to (a) FI
> Beginning inventory, purchases, and sales data for DVD players are as follows: The business maintains a perpetual inventory system, costing by the first-in, first-out method. a. Determine the cost of goods sold for each sale and the inventory balance af
> Assume that when a purchase of supplies of $2,650 for cash was recorded, both the debit and the credit were journalized and posted as $2,560. (a) Would this error cause the trial balance to be out of balance? (b) Would the trial balance be out of balanc
> Fonda Motorcycle Shop sells motorcycles, ATVs, and other related supplies and accessories. During the taking of its physical inventory on December 31, 20Y1, Fonda incorrectly counted its inventory as $597,600 instead of the correct amount of $576,900. a.
> Madison River Supply Co. sells canoes, kayaks, whitewater rafts, and other boating supplies. During the taking of its physical inventory on December 31, 20Y8, Madison incorrectly counted its inventory as $678,000 instead of the correct amount of $687,000
> On the basis of the following data, determine the value of the inventory at the lower of cost or market applied to (a) each item in the inventory, (b) each class of inventory, and (c) total inventory. Assemble the data in the form illustrated in Exhibit
> The units of an item available for sale during the year were as follows: There are 208 units of the item in the physical inventory at December 31. The periodic inventory system is used. Determine the ending inventory cost and the cost of goods sold by
> The units of an item available for sale during the year were as follows: There are 1,500 units of the item in the physical inventory at December 31. The periodic inventory system is used. Determine the inventory cost by the (a) first-in, first-out met
> The following units of a particular item were available for sale during the calendar year: The firm uses the weighted average cost method with a perpetual inventory system. Determine the cost of goods sold for each sale and the inventory balance after ea
> The following units of a particular item were available for sale during the calendar year: The firm uses the weighted average cost method with a perpetual inventory system. Determine the cost of goods sold for each sale and the inventory balance after
> Beginning inventory, purchases, and sales for Item 88-HX is as follows: Assuming a perpetual inventory system and using the last-in, first-out (LIFO) method, determine (a) the cost of goods sold on July 27 and (b) the inventory on July 31.
> Beginning inventory, purchases, and sales for WCS12 are as follows: Assuming a perpetual inventory system and using the weighted average method, determine (a) The weighted average unit cost after the October 22 purchase, (b) the cost of goods sold on Oc
> Michelle Horowitz is the manager of AAAA Office Supplies, a locally owned office supply store for schools and businesses. Michelle is concerned about the large variety of products the store carries, which ties up storage space and working capital. Mich
