Assignment

 
Assignment #3
Problem #1
Farm Fresh Produce Co. sells produce wholesale to local groceries on account. The accounts receivable
department had the following information on December 31, 2009:
Total Credit sales
$400,000.00
Balance of allowance for doubtful accounts ($950.00)
Bad debt as a percentage of credit sales 0.50%
Days Past Due
Amount
J Company 34
5,000.00
H Company 74
950.00
L Company 18
32,000.00
T Company 22
4,350.00
F Company 61
2,000.00
B Company 145
1,750.00
Age Class
Percentage Uncollectible
0-30
2%
30-60
5%
60-90
12%
90-120
20%
120+
75%
Instructions:
1. Create an aging of receivable report and determine the allowance for doubtful accounts.
2. Determine the allowance for doubtful accounts based on the percentage of sales method.
3. Illustrate the effects on the accounts and financial statements using both methods.
4. Illustrate the effects on the accounts and financial statements assuming Farm Fresh Produce Co.
wrote off the balance of T Company on April 3, 2010.
5. Illustrate the effects on the accounts and financial statements assuming that T Company paid off
its account on May 22, 2010.
Problem #2
Health Guard Labs, a pharmaceutical company, recently purchased a new pill dispensing machine. The
purchase price was $24,500, the estimated residual value was $10,000, and the estimated useful life is
five years. Additional expenditures during the first year of use were as follows:
1. Sales tax $750
2. Assembly $450
3. Maintenance repairs $2,500
4. Replacement parts $3,600
5. New battery to increase energy efficiency $670
Instructions:
1. Determine the machine asset value at year end of year one.
2. Create a depreciation schedule for year one and two for the dispensing machine by using
the straight line method.
3. Create a depreciation schedule for year one and two for the dispensing machine by using
the double declining method.

Place your order
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more