Question: What are the different approaches retailers can

> Sheffield Electronics, an electronics supply company, uses the perpetual inventory system with a subsidiary inventory ledger to maintain control over an inventory of thousands of electronic parts. The quantities and costs for three of the parts in invent

> The Acworth Company uses the perpetual inventory system. Record these transactions in a two-column journal. All credit sales are n/30. 201X 5 Purchased merchandise on account totaling $2,100; terms n/30. 6 Sold merchandise on account to Tommy Dorse

> Journalize the following transactions for Barry Company: 201X Received a $13,000, 90-day, 8% note from Alex Coates in payment of account past due. Apr. 18 Wrote off the Nicole Mason account as uncollectible for $570. (Barry uses the Allowance method

> Journalize the following: Jan. 12 Plank Co. sells 1,200 shares of $28 par-value common stock at $28. Oct. 21 Johnson Co. sells 300 shares of $6 par-value common stock at $24. Anton Co. sells 200 shares of no-par common stock with a stated value of $

> Journalize the following transactions for Joye Company: 201X June 18 Joye Company discounted its own $55,000, 60-day note at Newton Bank at 14%. Aug. Paid the amount due on the note of June 18. (Be sure to record interest expense from Discount on No

> On May 1, 201X, George Company received a $29,000, 70-day, 7% note from Nottingham Company dated May 1. On June 20, 201X, George discounted the note at Ashland Bank at a discount rate of 10%. 1. Calculate the following: a. Maturity value of the note b.

> Journalize the following entries for (1) the buyer and (2) the seller. Record all entries for the buyer first. Both companies use the periodic inventory method. 201X June 11 Lawton Company sold $6,500 of merchandise on account to Ritter Company. Jul

> Sherrill Company completed the following transactions: From the preceding as well as the following additional data, complete a–c: a. Journalize the transactions. The company uses the periodic method. b. Post to Allowance for Doubtfu

> T. J. Radcliff Company uses the direct write-off method for recording Bad Debts Expense. At the beginning of 2015, Accounts Receivable has a $120,000 balance. Journalize the following transactions for T. J. Radcliff: 2015 Mar. 13 Wrote off S. Rose's

> Given the information presented in Figure 13.12, do the following: a. Prepare on December 31, 2015, the adjusting journal entry for Bad Debts Expense. Balances: Cash, $26,000; Accounts Receivable, $215,000; Allowance for Doubtful Accounts, $250; Merchand

> Lambert Co. has requested that you prepare journal entries from the following (this company uses the Allowance for Doubtful Accounts method based on the income statement approach): 2015 Dec. 31 Recorded Bad Debts Expense of $11,000. 2016 Jan. 7 Wrot

> Using the ledger balances and additional data given, do the following for Cullen Lumber for the year ended December 31, 201X: 1. Prepare the worksheet. 2. Prepare the income statement, statement of owner’s equity, and balance sheet. 3.

> From the partial worksheet for Josh’s Supplies in Figure 12.15, do the following: 1. Complete the worksheet. 2. Prepare an income statement, a statement of owner’s equity, and a classified balance sheet. (Note: The amo

> Prepare a statement of owner’s equity and a classified balance sheet from the worksheet for James Company in Figure 12.14. (Note: Of the Mortgage Payable, $240 is due within 1 year.) Figure 12.14: JAMES COMPANY PARTIAL WORKSHEET F

> Complete the following using the gross profit method. Assume a normal gross profit rate of 27% of net sales. Goods Available for Sale Inventory January 1, 201X $69 Net Purchases 16 Cost of Goods Available for Sale A Less: Estimated Cost of Goods Sol

> Prepare a formal income statement from the partial worksheet for Nelson Company in Figure 12.13. Figure 12.13: NELSON CO. PARTIAL WORKSHEET FOR YEAR ENDED DECEMBER 31, 201X Income Statement Account Titles Dr. Cr. 36000 27000 Income Summary Sales 29

> Jackie’s Toy Shop completed the following merchandise transactions in the month of April: Jackie’s Toy Shop accounts included the following: Cash 101; Accounts Receivable 112; Merchandise Inventory 120; Store Equipme

> Abby Gray opened Abby’s Toy House. As her newly hired accountant, your tasks are to do the following: 1. Journalize the transactions for the month of December. Use the periodic method. 2. Record to subsidiary ledgers and post to the gen

> Wendy Drew operates a wholesale computer center and has hired you as her bookkeeper to record the following transactions. She would like you to (1) journalize the following transactions, (2) record to the accounts payable subsidiary ledger and post to th

> As the accountant for Riley’s Natural Food Store, (1) journalize the following transactions into the general journal (p. 2), (2) record and post as appropriate, and (3) prepare a schedule of accounts payable. If using working papers, be

> Robert Chase recently opened Robert’s Skate Shop. As the bookkeeper of the company, use the periodic method to journalize, record, and post when appropriate the following transactions (account numbers are Store Supplies 115; Store Equip

> Chevy Canton opened Chevy’s Cosmetic Market on May 1. A 16% sales tax is calculated and added to all cosmetic sales. Chevy offers no sales discounts. The following transactions occurred in May: Required: 1. Journalize, record, and pos

> Jared Payne owns Payne’s Sneaker Shop. (Balances as of March 1 are provided for the accounts receivable and general ledger accounts as follows: Durant, $250 Dr.; Lanham, $550 Dr.; Pry, $800 Dr.; Zamara, $550 Dr.; Cash, $15,500 Dr.; Acco

> The following transactions of Jeff’s Auto Supply occurred in February (Balances as of February 1 are given for general ledger and accounts receivable ledger accounts: Dick, $1,100 Dr.; Metcalf, $200 Dr.; Black, $100 Dr.; Accounts Receiv

> Kate Collins has opened Fontina and Stuff, a wholesale grocery and cheese company. The following transactions occurred in February: Required: 1. Journalize the transactions. 2. Record to the accounts receivable subsidiary ledger and post to the general

> Porter Morse returned $275 (selling price) of merchandise to Labrie Co. The cost of the merchandise to Labrie Co. is $100. What would be the journal entry on the books of both the buyer and seller?

> The following is the monthly payroll for the last three months of the year for Allen’s Sporting Goods Shop, 2 Boat Road, Lynn, Massachusetts 01945. The shop is a sole proprietorship owned and operated by Bill Allen. The EIN for Allen&ac

> The following is the monthly payroll of White Company, owned by Dana White. Employees are paid on the last day of each month. White Company is located at 2 Square Street, Marblehead, Massachusetts 01945. Its EIN is 29-3458822. The FICA tax rate for S

> You gathered the following data from time cards and individual employee earnings records. Your tasks are as follows: 1. On December 5, 201X, prepare a payroll register for this biweekly payroll. 2. Calculate the employer taxes of FICA OASDI, FICA Medicar

> From the following, record the transactions in Rochester’s auxiliary petty cash record and general journal as needed: 201X A check was drawn (no. 444) payable to Harold Hauer, petty cashier, to establish a $210 petty cash fund. Oct

> The following transactions occurred in April for Exultant Co.: Your tasks are to do the following: a. Record the appropriate entries in the general journal as well as the auxiliary petty cash record as needed. b. Replenish the petty cash fund on April

> From the following bank statement, please (1) complete the bank reconciliation for Josh’s Deli found on the reverse of the following bank statement and (2) journalize the appropriate entries as needed. a. A deposit of $2,400 is in tran

> Denim.com received a bank statement from Waldorf Bank indicating a bank balance of $7,900. Based on Denim.com’s check stubs, the ending checkbook balance was $8,974. Your task is to prepare a bank reconciliation for Denim.com as of July 31, 201X, from th

> Enter the beginning balance in each account in your working papers from the Trial Balance columns of the worksheet (Figure 5.24). From that worksheet, (1) journalize and post adjusting and closing entries and (2) prepare from the ledger a post-closing tr

> Consider the data in Figure 5.23 for Drew’s Dance Studio: Figure 5.23: Adjustment Data a. Insurance expired, $400. b. Dance supplies on hand, $800. c. Depreciation on dance equipment, $1,500. d. Salaries earned by employees but not t

> Journalize the following transactions: a. Issued credit memo no. 2, $43, to Lenny Co. b. Cash sales, $183. c. Received check from Dolly Co., $45, less 2% discount. d. Bought merchandise on account from Joseph Co., $31, invoice no. 20; terms 3/10, n/30.

> Post the following adjusting entries that came from the adjustments section of the following worksheet to the T accounts and be sure to cross-reference back to the journal. (See Figure 5.20) Figure 5.20: LEDGER ACCOUNTS BEFORE ADJUSTING ENTRIES PO

> Using the 80-20 principle, how can a retailer make certain it has enough inventory of fast-selling merchandise and a minimal amount of slow-selling merchandise?

> As the athletic shoe buyer for Dick’s Sporting Goods, how would you go about forecasting sales for a new Nike running shoe?

> The fine jewelry department in a department store has the same GMROI as the small appliances department, even though characteristics of the merchandise are quite different. Explain this situation.

> Variety, assortment, and product availability are the cornerstones of the merchandise planning process. Provide examples of retailers that have done an outstanding job of positioning their stores based on one or more of these issues.

> A buyer at Old Navy has received a number of customer complaints that he has been out of stock on some sizes of men’s T-shirts. The buyer subsequently decides to increase this category’s product availability from 80 percent to 90 percent. What will be th

> Assume you are the grocery buyer for canned fruits and vegetables at a five-store supermarket chain. Del Monte has told you and your boss that it would be responsible for making all inventory decisions for those merchandise categories. It would determi

> Simply speaking, increasing inventory turnover is an important goal for a retail manager. What are the consequences of turnover that’s too low? Too high?

> A buyer is trying to decide from which vendor to buy a certain item. Using the following information, determine from which vendor the buyer should buy. VENDOR PERFORMANCE Importance Weight Issues Vendor A Vendor B Reputation for collaboration 8 9 8 S

> A buyer at a sporting goods store in Denver receives a shipment of 400 ski parkas on October 1 and expects to sell out by 31. On November 1, the buyer still has 350 parkas left. What issues should the buyer consider in evaluating the selling season’s p

> How and why would you expect variety and assortment to differ between JCPenney’s store and Internet site?

> At many optical stores you can get your eyes checked and purchase glasses or contact lenses. How is the shopping experience different for the service as compared to the product? Design a strategy designed to get customers to purchase both the service a

> A CRM program focuses on building relationships with a retailer's better customers. Some customers who do not receive the same benefits as the retailer's best customers may be upset because they are treated differently. What can retailers do to minimiz

> Develop a CRM program for a local store that sells apparel and gifts with your college’s or university's logo. What type of information would you collect about your customers, and how would you use this information to increase the sales and profits of t

> Which of the following types of retailers do you think would benefit most from instituting a CRM program: (a) supermarkets, (b) banks, (c) automobile dealers, or (d) consumer electronic retailers? Why?

> Why are most frequent-shopper programs ineffective in terms of building loyalty? What can be done to make them more effective?

> Why do customers have privacy concerns about the frequent-shopper programs that supermarkets offer, and what can supermarkets do to minimize these concerns?

> Why do retailers want to determine the lifetime value of their customers? How does past customer behavior help retailers anticipate future customer retention?

> Think of one of your favorite places to shop. How does this retailer create customer loyalty and satisfaction, encourage repeat visits, establish an emotional bond between the customer and the retailer, know the customer’s preferences, and provide person

> What is a customer relationship management (CRM) program? Describe one CRM program that you have participated in as a customer.

> What is a universal product code (UPC)? How does this code enable manufacturers, distributors and retailers to track merchandise throughout the supply chain?

> An entrepreneur approaches you about how to sell her new writing pens to consumers. The pens have a unique benefit-they are more comfortable to use than traditional pens. The entrepreneur is concerned the retailers she has approached want to buy the p

> Abandoned purchases as a result of stockouts can mean millions of dollars a year in lost sales. How are retailers and manufacturers using technology to reduce stockouts and improve sales?

> Consumers have five key reactions to stakeouts: buy the item at another store, substitute a different brand, substitute the same brand, delay the purchase, or do not purchase the item. Consider your own purchasing behavior, and describe how various categ

> Explain the differences between pull and push supply chains.

> Why haven't more fashion retailers adopted an integrated supply chain system similar to Zara's?

> What type of merchandise is most likely to be cross-docked at retailers’ DCs? Why is this often the case?

> This chapter presents some trends in supply chain and information systems that benefit retailers. How do vendors benefit from these trends?

> Explain how an efficient supply chain system can increase a retailer's level of product availability and decrease its inventory investment.

> Why are some retailers switching from UPC codes to RFID?

> Retail system acronyms include DSD, VMI, EDI, CPFR and RFID. What do these terms means and how are they related to one another?

> If you were considering the ownership of a Taco Bell franchise, what would you want to know about the location in terms of traffic, population, income, employment, and competition? What else would need to be researched about a potential location?

> Compare and contrast the retail mixes of department stores and full-line discount stores. Use bullet points or a table to list the similarities and differences.

> What kind of lease should a new retail enterprise, opening its first store in an urban location that is experiencing gentrification and growth, seek to negotiate with the building owner?

> Retailers have a choice of locating on a mall’s main floor or second or third level. Typically, the main floor offers the best, but most expensive, locations. Why would specialty stores such as The Body Shop or Foot Locker choose the second or third fl

> Under what circumstances might a retailer use the analog approach for estimating demand for a new store? What about regression analysis?

> Trade areas are often described as concentric circles emanating from the store or shopping center. Why is this practice used? Suggest an alternative method. Which would you use if you owned a store in need of a trade area analysis?

> At Del Frisco's Steakhouse, steaks run from about $42 to $89 whereas at Outback Steakhouse they run from about $12 to $27. What characteristics would Del Frisco's look for in a trade area for a new location? How would those characteristics change for Out

> True Value Hardware plans to open a new store. Two sites are available, both in middle-income neighborhood centers. One neighborhood is 20 years old and has been well maintained. The other was recently built in a newly planned community. Which site i

> Which factors do retailers consider when evaluating an area of the country to locate stores? How do retailers determine the trade area for a store?

> How does the mall near you home or university combine the shopping and entertainment experience?

> Why would a Payless Shoe Source store locate in a neighborhood shopping center instead of a regional shopping mall?

> In many malls, quick-service food retailers are located together in an area known as a food court. What are the advantages and disadvantages of this location for the food retailers?

> The same brand and style of men’s suits are sold at different prices at a department store like Macy’s and at a specialty store like Men’s Warehouse. Why would a customer choose to buy the suit from one store rather than the other?

> Staples and Office Depot/OfficeMax all have strong multichannel strategies. How do competition and the Internet affect their strategies for locating stores?

> Retailers are locating in urban areas that have suffered decay. As a result, these areas are rejuvenating, a process known as gentrification. Some people have questioned the ethical and social ramifications of this process. Discuss the benefits and detri

> As a consultant to 7-Eleven convenience stores, American Eagle Outfitters, and Porsche of America, what would you say is the single most important factor in choosing a site for these three very different types of stores?

> Pick your favorite store. Describe the advantages and disadvantages of its current location, given its store type and target market.

> Consider a big city that has invested in an urban renaissance. What components of the gentrification project attract both local residents and visiting tourists to spend time shopping, eating, and sightseeing in this location?

> Why is store location such an important decision for retailers?

> A friend of yours is considering buying some stock in retail companies. Your friend knows that you are taking a course in retailing and asks for your opinion about Costco. Your friend is concerned that Costco is not a good firm to invest in because it

> Using the following information taken from the 2016 balance sheet and income statement for Urban Outfitters, develop a strategic profit model. (Figures are in millions of dollars.) Net sales $2,734.8 Cost of goods sold $1,316.2 Operating expenses $57

> Blue Nile is a jewelry retailer that only uses an Internet channel for interacting with its customers. What differences would you expect in the strategic profit model and key productivity ratios for Blue Nile and Zales, a multichannel jewelry retailer?

> How does Walmart contribute to and/or detract from the communities in which it operates stores?

> Why do investors place more weight on comparable-store sales than growth in sales?

> Macy's and Costco have targeted different customer segments. Which retailer would you expect to have a higher gross margin? Higher operating expenses as a percentage of sales? Higher operating profit margin percentage? Higher inventory turnover and asset

> A buyer can impact the gross margin percentage because he/she can, to some extent, control the sales and cost of goods sold. Expenses, which do not play a part in determining the gross margin percentage, are often out of the control of the buyer and the

> Buyers' performance is often measured by their gross margin percentage. Why is this figure more appropriate than the operating or net profit percentage?

> What are examples of the types of objectives that entrepreneurs might have for a retail business they are launching?

> What are the key productivity ratios for measuring the retailer as a whole, its merchandise management activities, and its store operation activities? Why are these ratios appropriate for one area of the retailer’s operation and inappropriate for others

> Identify a store or service provider that you believe has an effective loyalty program. Explain how the program works and why it is effective.

> The Gap owns several chains, including Old Navy, banana republic, INTERMIX, and Athlete. What type of growth opportunity was the Gap pursuing when it opened each of these retail concepts? Which is most synergistic with the original Gap chain?

> Assume you are interested in opening a restaurant in your town. Go through the steps in the strategic planning process shown in Exhibit 5–7. Focus on conducting a SWOT analysis of the local restaurant market, identifying and evaluating alternatives, and

> What are Neiman Marcus’s and Pet Smart’s bases for sustainable competitive advantage? Are they really sustainable, or are they easily copied?