I need F and G completed in excel document with formulas

SHORT ANSWER QUESTIONS, EXERCISES, AND PROBLEMS Questions: In view of the difficulty in estimating future events, would you recommend that accountants wait until collections are made from customers before recording sales revenue? Should they wait until known accounts prove to be uncollectible before charging an expense account? The credit manager of a company has established a policy of seeking to completely eliminate all losses from uncollectible accounts. Is this policy a desirable objective for a company? Explain. What are the two major purposes of establishing an allowance for uncollectible accounts? In view of the fact that it is impossible to estimate the exact amount of uncollectible accounts receivable for any one year in advance, what exactly does the Allowance for Uncollectible Accounts account contain after a number of years? What must be considered before adjusting the allowance for uncollectible accounts under the percentage-of-receivables method? How might information in an aging schedule prove useful to management for purposes other than estimating the size of the required allowance for uncollectible accounts? For a company using the allowance method of accounting for uncollectible accounts, which of the following directly affects its reported net income: (1) the establishment of the allowance, (2) the writing off of a specific account, or (3) the recovery of an account previously written off as uncollectible? Why might a retailer agree to sell by credit card when such a substantial discount is taken by the credit card agency in paying the retailer? Define liabilities, current liabilities, and long-term liabilities. What is an operating cycle? Which type of company is likely to have the shortest operating cycle, and which is likely to have the longest operating cycle? Why? Describe the differences between clearly determinable, estimated, and contingent liabilities. Give one or more examples of each type. In what instances might a company acquire notes receivable? How is the maturity value of a note calculated? What is a dishonored note receivable and how is it reported in the balance sheet? Under what circumstances does the account Discount on Notes Payable arise? How is it reported in the financial statements? Explain why. Real world question: Refer to \"A Broader Perspective: GECS allowance for losses on financing receivables\". What factors are taken into account by the General Electric Company in determining the adjusting entry to establish the desired balance in the Allowance for Losses? Real world question: Refer to \"A Broader Perspective: GECS allowance for losses on financing receivables\". Explain how the General Electric Company writes off uncollectibles. Exercises Exercise 1. The accounts of Stackhouse Company as of 2010 December 31, show Accounts Receivable, $190,000; Allowance for Uncollectible Accounts, USD 950 (credit balance); Sales, USD 920,000; and Sales Returns and Allowances, $12,000. Prepare journal entries to adjust for possible uncollectible accounts under each of the following assumptions: 1. Uncollectible accounts are estimated at 1 per cent of net sales. 2. The allowance is to be increased to 3 per cent of accounts receivable. Exercise 2. Compute the required balance of the Allowance for Uncollectible Accounts for the following receivables: Accounts Age Probability Receivable (months) of Collection $180,000 Less than 1 95% 90,000 1-3 85 39,000 3-6 75 12,000 6-9 35 2,250 9-12 10 Exercise 3. On 2009 April 1, Kelley Company, which uses the allowance method of accounting for uncollectible accounts, wrote off Bob Dyer's $400 account. On 2009 December 14, the company received a check in that amount from Dyer marked \"in full payment of account\". Prepare the necessary entries. Exercise 4. Jamestown Furniture Mart, Inc., sold $80,000 of furniture in May to customers who used their American Express credit cards. Such sales are subject to a 3 per cent discount by American Express (a nonbank credit card), 1. Prepare journal entries to record the sales and the subsequent receipt of cash from the credit card company. 2. Do the same as requirement (a), but assume the credit cards used were VISA cards (a bank credit card). Exercise 5. Dunwoody Discount Toys, Inc., sells merchandise in a state that has a 5 per cent sales tax. Rather than record sales taxes collected in a separate account, the company records both the sales revenue and the sales taxes in the Sales account. At the end of the first quarter of operations, when it is time to remit the sales taxes to the state taxing agency, the company has $420,000 in the Sales account. Determine the correct amount of sales revenue and the amount of sales tax payable. Exercise 6. Assume the following note appeared in the annual report of a company: In 2015, two small retail customers filed separate suits against the company alleging misrepresentation, breach of contract, conspiracy to violate federal laws, and state antitrust violations arising out of their purchase of retail grocery stores through the company from a third party. Damages sought range up to $10 million in each suit for actual and treble damages and punitive damages of $2 million in one suit and $10 million in the other. The company is vigorously defending the actions and management believes there will be no adverse financial effect. What kind of liability is being reported? Why is it classified this way? Do you think it is possible to calculate a dollar amount for this obligation? How much would the company have to pay if it lost the suit and had to pay the full amount? Exercise 7. Determine the maturity date for each of the following notes: Issue Date Life 2010 January 13 30 days 2010 January 31 90 days 2010 June 4 1 year 2010 December 2 1 month Exercise 8. Crawford, Inc., gave a $20,000, 120-day, 12 per cent note to Dunston, Inc., in exchange for merchandise. Crawford uses periodic inventory procedure. Prepare journal entries to record the issuance of the note and the entries needed at maturity for both parties, assuming payment is made. Exercise 9. Based on the facts in the previous exercise, prepare the entries that Crawford, Inc., and Dunston, Inc., would make at the maturity date, assuming Crawford defaults. Exercise 10. John Wood is negotiating a bank loan for his company, Wood, Inc., of $16,000 for 90 days. The bank's current interest rate is 10 per cent. Prepare Wood's entries to record the loan under each of the following assumptions: 1. Wood signs a note for $16,000. Interest is deducted in calculating the proceeds turned over to him. 2. Wood signs a note for $16,000 and receives that amount. Interest is to be paid at maturity. Exercise 11. Pistol Pete provides communication services and products, as well as network equipment and computer systems, to businesses, consumers, communications services providers, and government agencies. The following amounts were included in its 2010 annual report: (Millions) Net sales $ 79,609 Receivables, net, 2009 December 31 29,275 Receivables, net, 2008 December 31 28,623 Calculate the accounts receivable turnover and the number of days' sales in accounts receivable. Use net sales instead of net credit sales in the calculation. Comment on the results. Problems Problem A. As of 2009 December 31, Fargo Company's accounts prior to adjustment show: Allowance for uncollectible accounts (credit balance) Accounts receivable $ 40,000 Allowance for uncollectible accounts (credit balance) 750 Sales 250,000 Fargo Company estimates uncollectible accounts at 1 per cent of sales. On 2010 February 23, the account of Dan Hall in the amount of $300 was considered uncollectible and written off. On 2010 August 12, Hall remitted $200 and indicated that he intends to pay the balance due as soon as possible. By 2010 December 31, no further remittance had been received from Hall and no further remittance was expected. 1. Prepare journal entries to record all of these transactions and adjusting entries. 2. Give the entry necessary as of 2009 December 31, if Fargo Company estimated its uncollectible accounts at 8 per cent of outstanding receivables rather than at 1 per cent of sales. Problem B. At the close of business, Jim's Restaurant had credit card sales of $12,000. Of this amount, $4,000 were VISA (bank credit card) sales invoices, which can be deposited in a bank for immediate credit, less a discount of 3 per cent. The balance of USD 8,000 consisted of American Express (nonbank credit card) charges, subject to a 5 per cent service charge. These invoices were mailed to American Express. Shortly thereafter, a check was received. Prepare journal entries for all these transactions. Problem C. Ruiz Company sells merchandise in a state that has a 5 per cent sales tax. On 2010 January 2, Ruiz sold goods with a sales price of $80,000 on credit. Sales taxes collected are recorded in a separate account. Assume that sales for the entire month were $900,000. On 2010 January 31, the company remitted the sales taxes collected to the state taxing agency. 1. Prepare the general journal entries to record the January 2 sales revenue. Also prepare the entry to show the remittance of the taxes on January 31. 2. Now assume that the merchandise sold on January 2 also is subject to federal excise taxes of 12 per cent. The federal excise taxes collected are remitted to the proper agency on January 31. Show the entries on January 2 and January 31. Problem D. Honest Tim's Auto Company sells used cars and warrants all parts for one year. The average price per car is $10,000, and the company sold 900 in 2009. The company expects 30 per cent of the cars to develop defective parts within one year of sale. The estimated average cost of warranty repairs per defective car is $600. By the end of the year, 80 cars sold that year had been returned and repaired under warranty. On 2010 January 4, a customer returned a car purchased in 2009 for repairs under warranty. The repairs were made on January 8. The cost of the repairs included parts, $400, and labor, $210. 1. Calculate the amount of the estimated product warranty payable. 2. Prepare the entry to record the estimated product warranty payable on 2009 December 31. 3. Prepare the entry to record the repairs made on 2010 January 8. Problem E. Celoron Power Boat Company is in the power boat manufacturing business. As of 2010 September 1, the balance in its Notes Receivable account is $256,000. The balance in Dishonored Notes Receivable is $60,660 (includes the interest of $600 and the protest fee of $60). A schedule of the notes (including the dishonored note) is as follows: Face Amount Date Maker Interest of Note Life Rate $ 100,000 1. Glass Co. 2009/6/01 120 days 12% 72,000 1. Lamp Co. 2009/6/15 90 8 84,000 1. Wall Co. 2009/7/01 90 10 60,000 1. Case Co. 2009/7/01 60 6 $316,000 Following are Celoron Power Boat Company's transactions for September: Sept. 10 Received USD 36,660 from N. Case Company as full settlement of the amount due from it. The company does not charge losses on notes to the Allowance for Uncollectible Accounts account. ? The A. Lamp Company note was collected when due. ? The C. Glass Company note was not paid at maturity. ? C. Wall Company paid its note at maturity. 30 Received a new 60-day, 12 per cent note from C. Glass Company for the total balance due on the dishonored note. The note was dated as of the maturity date of the dishonored note. Celoron Power Boat Company accepted the note in good faith. Prepare dated journal entries for these transactions. Problem F. Castro Shoes Company is in the power boat manufacturing business. As of 2015 September 1, the balance in its Accounts Receivable by Age account is $156,000. A schedule of accounts receivable by age is as follows: Account Balance Current Elson, Adam, Griffin, Erica 21,000 850 1-30 350 25,690 570 700 Past Due In Days 31-60 Over 60 670 550 Castro, Rod All other accounts Totals 300 155 70 109,010 25,000 4,500 3,755 1,567 156,000 26,575 5,550 4,375 2,226 Use the Following Uncollectible Accounts rates: Current 1.5% 1-30 days past due 2% 31-60 days past due 10% Over 60 days past due 21% Requirements: 1. Compute the estimated uncollectible accounts at the end of the fiscal year using above rates. 2. The credit balance was = $230 in Allowance for Doubtful Accounts (December 31, 2015), please calculate the amount of the adjustment for uncollectable accounts expense. This adjustment should included as a part of the adjusting entries. Record this entry. 3. Elson Adam (account receivable) did not make a payment on time and the amount of $670 was classified as uncollectible and written off on June 15, 2015, please record this journal entry. 4. Please, estimate the uncollectible accounts using percentages of the total accounts receivable on December 31, 2015. The rate = 3% of the total total accounts receivable. Record this entry. 1) Castro Shoes Company Estimation of Uncollectible Accounts Over 60 days past due 31-60 days past due 1-30 days past due Current Total Estimation of Uncollectible Accounts 2) Adjustment for Estimated Uncollectible Accounts Estm. Of Uncollectible Accounts ................................................ Less Credit balance ................................................................ Estimated Uncollectible Accounts After Adjustment......................... Castro Shoes Company General Journal Date Description Debit Credit Problem G. Berta Company's estimates uncollectible accounts at 1.5% of total net sales. Total net sales for the year were $230,000; receivables at year-end were $530,000; and the Allowance for Doubtful Accounts had a zero balance. Requirements: 1. Compute the estimated uncollectible accounts at the end of the fiscal using Allowance for Doubtful Account, and record this entry in the general journal, 2. What is the balance of accounts receivable, net