hello,

I need help with my homework that is due today. One tutor promised to do it for me but ts has been 32 hours i have not receive solutions for my exercises which is week 1 acc/291. i am attaching it again and i would appreciate if one of you will help me. i can submit it tomorrow and get 10% less scores but it is better than nothing

8-4 What are intangible assets? Intangible assets are defined by BusinessDictionary.com as \"long-term resources that have no physical existence.\" The value of intangible assets is gained from the value they add to other assets and from their intellectual or legal right. An intangible asset is a non-physical asset that has a useful life of greater than one year, these assets can be: Artistic assets. Leasehold improvements. Software developed for internal use. Internally developed and not specifically identifiable. Goodwill Trademarks Customer lists Motion pictures Franchise agreements Intangible asset has a finite useful life and it should be amortized over its useful life. The amount to be amortized is its recorded cost. Intangible assets usually are not considered as residual value holder and assets' full amount gets amortized. If intangible assets useful life is indefinite, it cannot be amortize it. Instead, it has to be periodically evaluated to see if its value has become impaired. If the intangible asset is goodwill, then you cannot amortize it under any circumstances The difficulty in accounting for intangible assets lies in whether it has a limited or indefinite useful life. Those assets, such as a patent, that may be purchased for a specific dollar amount have a limited useful life (the legal life of the patent). Assets with a limited useful life are amortized on a straight-line basis over their determined life. Other difficulties relating to patents are the costs of research and development and the costs of any litigation defending the patent. These costs are added to the value of the patent and are amortized over the remaining life of the patent per the text. Other assets, such as a trademark or trade name, have an indefinite useful life. These are not amortized Q 1 How would you describe the entries to record the disposition of accounts receivables? What is their function? The entries to record receivables, such as Accounts Receivables, Notes Receivables, Interest Receivables, income tax refundable, etc., are very diverse. They involve other accounts like Sales and Interest Revenue. Depending on how receivables are accrued, some accounts like Bad Debts Expense are used during journal entries as well. I did not know accounts receivables was used in depth this much until reading about them this week. It is much more to accounts receivables than just unpaid accounts from customers. I would not be able to describe all of the entries to record the placement of accounts receivables. However, the basic use of accounts receivable would be debiting accounts receivable when a customer owes a balance after services are performed and crediting sales or another account. Accounts receivables would be credited once a payment is received on the account from the customer and cash would be debited. The function of accounts receivables is to keep track of the money that a company owes the business. Without an accurate balance in accounts receivables, the balance sheet and other statements would not balance. It is important for the company to know what services have been performed on account or what merchandise has been sold on account. This prevents the business from cheating someone or getting cheated. DQ 1 How would you describe the entries to record the disposition of accounts receivables? What is their function? The entries to record receivables, such as Accounts Receivables, Notes Receivables, Interest Receivables, income tax refundables, etc, are very diverse. They involve other accounts like Sales and Interest Revenue. Depending on how receivables are accrued, some accounts like Bad Debts Expense are used during journal entries as well. I did not know accounts receivables was used in depth this much until reading about them this week. It is much more to accounts receivables than just unpaid accounts from customers. I would not be able to describe all of the entries to record the placement of accounts receivables. However, the basic use of accounts receivable would be debiting accounts receivable when a customer owes a balance after services are performed and crediting sales or another account. Accounts receivables would be credited once a payment is received on the account from the customer and cash would be debited. The function of accounts receivables is to keep track of the money that a company owes the business. Without an accurate balance in accounts receivables, the balance sheet and other statements would not balance. It is important for the company to know what services have been performed on account or what merchandise has been sold on account. This prevents the business from cheating someone or getting cheated. DQ 2 How are bad debts accounted for under the direct write-off method? What are the disadvantages of this method? Under the direct write off method, a company does not anticipate bad debt expense. Rather, it waits until an account is actually written off as uncollected before recording bad debt expense. This means its accounts receivable will be reported on the balance sheet at their full amounts implying that all of the accounts receivable will be turning to cash. If there is some doubt concerning the collectible of some of the receivables, the assets are potentially overstated and the company's profit is potentially overstated. Since there is usually a significant amount of time between a credit sale and the write off of a bad account, the bad debt expense will occur in a much later period than the revenue from the sale. This is a problem under the matching principle. The accounting profession prefers the allowance method over the direct write off method because the accounts receivable will be presented on the balance sheet with a reduction called the allowance for doubtful accounts. This means the net amount of the accounts receivable will be lower and closer to the amount that will actually be collected. Bad debt expense is reported at the time that the allowance for doubtful accounts is created and adjusted. Hence, the bad debt expense is reported closer to the time of the credit sale. It should be noted that the Internal Revenue Service requires the direct write off method. They prefer to see the tax deduction for bad debt expense only when an account receivable is actually written offas opposed to allowing a deduction for an anticipated potential loss. DQ 3 Why would you select the percentage of sales method for calculating doubtful accounts instead of the percentage of receivables method? The reason a company would choose percentage of sales method over percentage of receivables is due to matching revenues and expenses within the same period. If you automatically took a percentage of sales for the period and made a transaction of expected percentage of bad debt expense to an allowance of doubtful accounts, you automatically have an allowance expenses within the period if any of the accounts became uncollectable. If you chose the percentage of receivables (which many of the companies I worked for used) then the amount of bad debt would be on a sliding scale (increasing in risk percentage as time elapsed) and therefore notifying the company how much money should be assigned to bad debt expenses. This estimation would be completed each time that a balance sheet was created, rather than when the closing of the books for the accounting period occured. Therefore the sliding scale would not represent the same reporting and matching of expenses to revenue that is desired. CC 291 Week 1 DQ 2 Based on the information presented in the assigned reading, what are the differences among valuation, depreciation, amortization, and depletion? Do you think your current or former employer organization records depreciation, amortization, and/or depletion? Please include an explanation to support your response. Valuation refers to the market value of an asset without regard for depreciation; it is the market value. Depreciable assets fall into three categories, land improvements, buildings, and equipment, and substantiate the book value, \"cost less accumulated depreciation\" (Weygandt, Kimmel, & Kieso, 2010, pg. 5, chap. 9.1), which businesses expense over the useful life of the asset. Amortization refers to the cost allocation of \"... rights, privileges, and competitive advantages\" (Weygandt, Kimmel, & Kieso, 2010, pg. 1, chap. 9.3) of limited intangible assets, such as copyrights, which do not have physical properties. Depletion refers to the cost allocation of resources physically extracted by operations that \"...are replaceable only by an act of nature\" (Weygandt, Kimmel, & Kieso, 2010, pg. 1, chap. 9.2), such as stone from a gravel bank while reading this question I thought of my experience in NASCAR racing and how the teams would depreciate racecars. Consider every chassis has a useful life, but some chassis' will never make it to the racetrack for one reason or another. Every racecar body has a useful life and again some will never see the track. For those chasses and bodies that do race, there is a chance that both will be destroyed in the first lap. At the two extremes of minimization and maximization, there are racecars that never race and there are racecars that do not crash and race throughout the useful life. My question is how an owner or financial manager would account for variable depreciation. Copyright 2000-2016 by John Wiley & Sons, Inc. or related companies. All rights reserved