Revenue and expense data for the current calendar year for Tannenhill Company and for the electronics Industry are as follows. Tannenhill's data are expressed in dollars. The electronics Industry averages are expressed in percentages. Electronics Tannenhill Industry Company Average Sales $2,280,000 100% Cost of goods sold 1,482,000 69 Gross profit $798,000 31 % Selling expenses $478,800 18 % Administrative expenses 182,400 7 Total operating expenses $661,200 Operating income $136,800 6 % Other Income 45,600 2 25 % 8 % Other expense $182,400 22,800 1 Income before income tax $159,600 7 % Income tax expense Net income 4 68,400 $91,200 3 % a. Prepare a common-sized income statement comparing the results of operations for Tannenhill Company with the pre Comment compagnements or operators Tormen company with Industry average. If required, round percentages to one decimal place. Enter all amounts as positive numbers. Tannenhill Company Common-Sized Income Statement For the Year Ended December 31 Tannenhill Company Tannenhill Company Percent Electronics Industry Average Amount Sales $2,280,000 100 % 100.0% Cost of goods sold 1,482,000 % 69% Gross pront $798,000 96 31% $478,800 18% Selling expenses Administrative expenses 182,400 7% % 25% Total operating expenses $661,200 Operating income $136,800 Other income 45,600 96 6% % 2% % 8% $182,400 22,800 % 1% Other expense Income before income tax $159,600 % 7% Income tax expense 68,400 % 4% Net income $91,200 % 3% b. The company is managing the cost of manufacturing product than the industry, and has slightly selling and administrative expenses relative to the industry. The combined impact causes net income as a percent of sales to be than the industry average. Providing for Doubtful Accounts At the end of the current year, the accounts receivable account has a debit balance of $1,080,000 and sales for the year total $12,250,000 a. The allowance account before adjustment has a debit balance of $14,600. Bad debt expense is estimated at 1/2 of 1% of sales b. The allowance account before adjustment has a debit balance of $14,600. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $46,700. c. The allowance account before adjustment has a credit balance of $5,800. Bad debt expense is estimated at 1/4 of 1% of sales. d. The allowance account before adjustment has a credit balance of $5,800. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $48,100. Determine the amount of the adjusting entry to provide for doubtful accounts under each of the assumptions (a through d) listed above. 61,250 b. 32,100 X 61,250 X d. 53,900 X Periodic inventory by three methods; cost of goods sold The units of an item available for sale during the year were as follows: Jan. 1 Inventory 40 units at $126 Mar. 10 Purchase 60 units at $138 Aug. 30 Purchase 20 units at $146 Dec. 12 Purchase 80 units at $152 There are 40 units of the item in the physical inventory at December 31. The periodic inventory system is used. Determine the ending inventory cost and the cost of goods sold by three methods. Round interim calculations to one decimal and final answers to the nearest whole dollar. Cost of Ending Inventory and Cost of Goods Sold Inventory Method Ending Inventory Cost of Goods Sold First-in, first-out (FIFO) $ Last-in, first-out (LIFO) Weighted average cost
