Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Case ASSIGNMENT JACOBIAN STEEL
Jacobian Steel Manufacturing sells bulk steel products for maritime construction. The company has used the allowance method for estimated bad debts for several years.
Specifically they estimate that 6% of credit sales will go bad each year. Over the past several years, Jacobian has seen that year-end allowance account has a debit balance before adjustment. The company wants an in-depth analyzes of bad debts and a determination as to which method to use. You have been hired to perform the study. During your review of their financial records, the following data becomes available.
Credit Sales:
Year
Total Sales
% on credit
2010
$1,000,000
60%
2011
$1,800,000
70%
2012
$2,000,000
75%
Write offs:
Bad debts written off
$52,000
$96,000
$60,000
Allowance Balance on December 31, 2005 before adjustment:
Balance
$6,000
$42,000
$12,000
Aging of Accounts Receivable:
Accounts Receivable
Percentage uncollectible
Not due
$250,000
6%
1-30 past due
$110,000
15%
31-60
$140,000
20%
61- 90
$90,000
30%
Over 90 days
$40,000
- Considering also using percentage of accounts receivable balance to compute estimated uncollectible for period. Jacobian considers using 12%.
Accounts Receivable Balance:
Year end Balance
$365,000
$425,000
$630,000
Which method should they use and why? Calculate bad debts under each method and find the method closest to the actual bad debts.
Financial Statement Analysis and Preparation
Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?
An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.
Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.
This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited
Prepare general journal entries for Goela Ltd
Prepare the journal entry to record the acquisition of the assets.
Prepare general journal entries to record the transactions, assuming use of the periodic inventory system
Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.
Explain the IASB Conceptual Framework's perspective of users and their decisions.
T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .
Computation of Free Cash Flow
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd