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i ii iii iv v vi Estimating Uncollectible Accounts and Reporting Accounts Receivable Lafond Company analyzes its accounts receivable at December 31, and arrives at
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Estimating Uncollectible Accounts and Reporting Accounts Receivable Lafond Company analyzes its accounts receivable at December 31, and arrives at the age categories below along with the percentages that are estimated as uncollectible. kasse 2 Accounts Age Group Recevable 0-30 days past due $ 180,000 31-60 days past due 40,000 61-120 days past due 22.000 121.180 12,000 Over 180 days past due 8.000 Total accounts receivable $ 262 000 5 10 The balance of the allowance for uncollectible accounts is $1,040 on December 31, before any adjustments. (a) What amount of bad debts expense will Lafond report in its income statement for the year? (b) Use the financial statement effects template to record LaFond's bad debts expense for the year. Use negative signs with your answers, when appropriate. Sh. Record bad debts expense 0 0 0 (c) What is the balance of accounts receivable on it December balance sheet? Constructing and Assessing Income Statements Using Cost-to-Cost Method Assume General Electric Company agreed in May 2016 to construct a nuclear generator for NSTAR, a utility company serving the Boston area. General Electric Company estimated that its construction costs would be $1,080 million. The contract price of $1,350 million is to be paid as follows: $450 million at the time of signing: $450 million on December 31, 2016; and $450 million at completion in May 2017. General Electric incurred the following costs in constructing the generator: $432 million in 2016 and $648 million in 2017. a. Compute the amount of General Electric's revenue, expense, and income for both 2016 and 2017, and for both years combined, under the cost-to-cost revenue recognition method. Enter dollar amounts in millions. Cost to-Cost Method of total exceptes Revenus Eosts Year incurred 2016 5 965 $ 2017 90 Total $ $ $ Operating Expenses Target Corporation's footnote from its annual report table illustrates the primary items classified in each major expense category: cost of sales (COS), or selling, general and administrative (SG&A). For each expense, indicate whether the item would be included in COS or SG&A. Category Expense a. Advertising expenses b. Compensation and benefit costs for headquarters employees c. Compensation and benefit costs for store employees d. Compensationand benefits costs for distribution center employees e. Distribution center costs t. Freight expenses associated with moving merchandise from our vendors to our distribution centers and our retail stores g. Freight expenses associated with moving merchandiseamong our distribution and retail stores h. Import costs 1. Inventory shrink and theft ]. Litigation and defense costs and related insurance recovery k Markdowns on slow moving inventory 1. Occupancy and operating costs for headquarters facilities m. Occupancy and operating costs of retail locations n. Outbound shipping and handling expenses associated with sales to our guests o. Payment term cash discounts to our vendors p. Pre-opening costs of stores and other facilities q.U.S. credit cards servicing expenses r. Vendor reimbursement of specific, incremental, and identifiable advertising costs Identifying Operating Income,Components Following is the Deere & Company income statement for 2018. a. Identify the components in its income statement that you would consider operating. Using the drop-down box next to each account, indicate whether it is operating or nonoperating $ millions Operating or INonoperating 2018 Net sales and revenue Net sales Finance and interest income $33,350.7 3,106.6 Other income 900.4 Total $37 357.7 25,751.2 1,399.1 1,657.6 3,455.5 Costs and expenses Cost of sales Research and development expenses Selling, administrative and general expenses Interest expense Other operating expenses Total Income of consolidated group before income taxes Provision for income taxes Income of consolidated group Equity in income of unconsolidated affiliates Net income Less: Net income attributable to noncontrolling interests Net income attributable to Deere & Company 1,203.6 33,287.0 4,070.7 1,726.9 2,343.8 26.8 2,370.6 2.2 $2.368.4 Notes: The income statement includes John Deere commercial and consumer tractor segment, a finance subsidiary that provides loan and lease financing relating to the sales of those tractors, and a health care segment that provides managed health care services for the company and certain outside customers, Equity in income of unconsolidated affiliates refers to income John Deere has earned on investments made for strategic purposesStep by Step Solution
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