What does this mean

NAME:

Harriet's Hats, Inc.

Harriet's Hats is a fictional company. The following information includes the balance sheet as of December $31,2023,$ and the details of the transactions that occurred during $2024.$

Background: Harriet's Hats is a hat retailer $($in other words, Harriet's buys hats from a hat manufacturer and then sells them in their stores$).$ Transactions for $2024$ are representative of such a company's business activities. HINT: Read through the entire assignment at least twice before beginning to do any work. This will help you familiarize yourself with all of the important facts.

Transactions for $2024$:

Sales and Accounts Receivable

a$.$ Harriet's hats during $2024$ had a sales price of $$101$ per hat. All sales were made on account.

b$.$ Cash collections on account amounted to $$2,454,300.$

c$.$ On July $1,2024,$ Harriet's identified $$36,720$ of receivables as being uncollectible and wrote them off.

d$.$ Harriet's follows a percentage$-$of$-$receivables approach to estimate their accounts receivable that will become uncollectible. As of the end of $2024,$ Harriet's estimates that $13\%$ of their receivables will be uncollectible.

Inventory

a$.$ Harriet's began $2024$ with $8,100$ hats which had a cost of $$68$ each. Employees physically counted $4,200$ hats remaining in the warehouse at the end of $2024.$ Harriet's uses a LIFO inventory system to cost their inventory.

The following purchases $($all on account$)$ were made during $2024$:

i$.$ January ${15}^{th}-6,300$ hats @ $$86\mathrm{.}00$ each

ii$.$ March ${22}^{nd}-4,500$ hats @ $$81\mathrm{.}00$ each

iii. August $5^{th}-2,800$ hats @ $$66\mathrm{.}00$ each

iv$.$ October ${26}^{th}-9,500$ hats @$$68\mathrm{.}00$ each

b$.$ During $2024,$ Harriet's made cash payments to inventory suppliers on the following dates:

i$.$ January ${29}^{th}-$$$433,440$

ii$.$ April ${16}^{th}-$$$328,050$

iii. October $2^{nd}-$$$184,800$

iv$.$ November ${30}^{th}-$$$516,800$

Property, Plant and Equipment

a$.$ Harriet's uses straight$-$line depreciation for all of its store fixtures and office equipment.

b$.$ Below is a schedule of the store fixtures and office equipment Harriet's had in place at the end of $2023.$

$\backslash$table$[[$FIXTURES AND EQUIPMENT $($as of December $31,2023)],[$ID #$,\backslash$table$[[$Historical$],[$Cost$]],\backslash$table$[[$Estimated$],[$Useful Life$]],\backslash$table$[[$Estimated$],[$Salvage Value$]],$Date acquired$],[1256,$$$144,000,12$ years,$$0,$Jan. $1,2016],[1876,$$$154,000,10$ years,$$14,000,$Jan. $1,2017],[4299,$$$88,800,8$ years,$$20,000,$Jan. $1,2021]]$

c$.$ On January $1,2024,$ new store fixtures were purchased for $$146,000$ in cash. Harriet's expects the fixtures to have a $10-$year useful life and a $$12,000$ salvage value.

d$.$ On July $1,2024,$ office equipment $($ID#$1876)$ was sold for $$95,000.$