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Please help me solve the attached questions. Thank you! P 2 Accounts Receivable Aging Method Techno Designs Store uses the accounts receivable aging method to
Please help me solve the attached questions. Thank you!
P 2 Accounts Receivable Aging Method Techno Designs Store uses the accounts receivable aging method to estimate uncollectible accounts. On February 1, 2014, the balance of the Accounts Receivable account was a debit of $442,341, and the balance of Allowance for Uncollectible Accounts was a credit of $43,700. During the year, the store had sales on account of $3,722,00, sales returns and allowances of $60,000, worthless accounts written off of $44,300, and collections from customers of $3,211,00. As part of the end-of-year (January 31, 2015) procedures, an aging analysis of accounts receivable is prepared. The analysis, which is partially complete, follows. To finish the analysis, the following accounts need to be classified: From past experience, the company has found that the following rates are realistic for estimating uncollectible accounts: REQUIRED 1. Complete the aging analysis of accounts receivable. 2. Compute the end-of-year balances (before adjustments) of Accounts Receivable and Allowance for Uncollectible Accounts. 3. Prepare an analysis computing the estimated uncollectible accounts. (Round to the nearest whole dollar.) 4. How much is Techno Designs Store's estimated uncollectible accounts expense for the year? (Round the adjustment to the nearest whole dollar.) 5. ACCOUNTING CONNECTION What role do estimates play in applying the aging analysis? What factors might affect these estimates? ____________________________________________________________________________________ P 3 Notes Receivable Calculations West Palm Company engaged in the following transactions involving promissory notes: REQUIRED 1. For each of the notes, determine the (a)maturity date, (b)interest on the note, and (c)maturity value. (Round to the nearest cent.) 2. Assume that the fiscal year for West Palm ends on June 30. How much interest income should be recorded on that date? (Round to the nearest cent.) 3. ACCOUNTING CONNECTION What are the effects of the transactions in May on cash flows for the year ended June 30? P3 Comparison of Depreciation Methods Zeigler Manufacturing Company purchased a robot for $720,000 at the beginning of year 1. The robot has an estimated useful life of four years and an estimated residual value of $60,000. The robot, which should last $20,000, was operated 6000 hours in year 1; 8000 hours in year 2; 4000 hours in year 3; and 2000 hours in year 4. REQUIRED 1. Compute the annual depreciation and carrying value for the robot for each year assuming the following depreciation methods: 1. straight-line, 2. production, and 3. double-declining-balance. 2. If the robot is sold for $750,000 after year 2, what would be the amount of gain or loss under each method? 3. ACCOUNTING CONNECTION What conclusions can you draw from the patterns of yearly depreciation and carrying value in requirement 1? Do the three methods differ in their effect on the company's profitability? Do they differ in their effect on the company's operating cash flows? Explain
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