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B. Estimate how much WWE collected from customers in 2020? You need to use information from the footnote above and the financial statements. Assume all
B. Estimate how much WWE collected from customers in 2020? You need to use information from the footnote above and the financial statements. Assume all receivables relate to Media Revenue and all Media Revenue sales are on credit. (2 points) C. The following pertain to hypothetical events in 2021 and 2022. For each part, what would be the effects of all of the associated entries that were recorded during the year in question (e.g.. if there is a sale with bad debts, both should be included). Please include a + or - unless it is zero (e.g., +14, -17, 0). 1. During 2021, WWE closes an entertainment venue they own in Madrid. The venue originally cost $100 to purchase in 2011 and is 25% of the way through its useful life at the time of sale (there was no expected salvage). WWE expects to sell off the closed facility for $60. Employees laid off as a result of the closure are entitled to $30 severance payments, of which $10 is paid in 2021, the remainder to be paid in 2022. (3 points) What would be the effect on 2021 total assets, total liabilities and pretax income? *21 Total Assets *21 Total Liab. *21 Pretax Income During 2022, WWE sells the venue for $70 and pays off the remaining severance liability of $20: *22 Total Assets '22 Total Liab. *22 Pretax Income 2. During 2021, WWE sells t-shirts on credit for $100 that WWE purchased in 2020 for $60 in cash. WWE estimates that 2% of its receivables will ultimately be uncollectible. In addition, during 2021, WWE writes off $1 of receivables related to sales made in 2020. (1.5 points) *21 Total Assets *21 Total Liab. *21 Pretax Income 3. During 2021, WWE sells DVDs for $100 in cash with a guarantee of customer satisfaction (you may ignore cost of goods sold). WWE estimates that 2% of sales will be returned for a refund. In addition, during 2021, customers who bought DVDs during 2020 are paid refunds totaling $1. (1.5 points) *21 Total Assets '21 Total Liab. *21 Pretax Income
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