Reference no: EM131787560
Question -
Part 1 - On July 1, 2010, Wallace Company, a calendar-year company, sold special-order merchandise on credit and received in return an interest-bearing note receivable from the customer. Wallace Company will receive interest at the prevailing rate for a note of this type. Both the principal and interest are due in one lump sum on June 30, 2011. When should Wallace Company report interest revenue from the note receivable? Discuss the rationale for your answer.
Part 2 - On December 31, 2010, Wallace Company had significant amounts of accounts receivable as a result of credit sales to its customers. Wallace uses the allowance method based on credit sales to estimate bad debts. Past experience indicates that 2% of credit sales normally will not be collected. This pattern is expected to continue.
(a) Discuss the rationale for using the allowance method based on credit sales to estimate bad debts. Contrast this method with the allowance method based on the balance in the trade receivables accounts.
(b) How should Wallace Company report the allowance for doubtful accounts on its balance sheet at December 31, 2010? Also, describe the alternatives, if any, for presentation of bad debt expense in Wallace Company's 2010 income statement.
|
Describe and analyse main causes of chiles economic growth
: Describe and analyse the main causes of Chile's economic growth since 1982 to date. You may refer to the recommend reading list and also conduct your research.
|
|
Should comiskey fence co extend credit to the customers
: Comiskey Fence Co. is evaluating the extension of credit to a new group of customers. Although these customers will provide $180,000 in additional credit sales.
|
|
Discuss what will the journal entry be
: The land in Coquitlam was acquired in 20X3 at a cost of $120,000 and has been revalued to its December
|
|
Frequency for each of the scrum method
: Determine the frequency for each of the following in the Scrum method:
|
|
Discuss the rationale for using the allowance method
: On July 1, 2010, Wallace Company, Discuss the rationale for using the allowance method based on credit sales to estimate bad debts
|
|
Solved by using permutations or combinations
: Determine whether each of the following counting problems can be solved by using permutations or combinations, and answer each question.
|
|
International management experts contend that globalization
: Some international management experts contend that globalization and national responsiveness are completely opposed forces,
|
|
Calculate the monthly insurance premium
: Write an algorithm in structured English (pseudocode) that describes the steps required to perform the task specified - ource code for your Python implementatio
|
|
Complete the budgeted income statement for january
: Tuition revenue in December 2011 was $70,000, and tuition revenue budgeted for January 2012 is $100,000. Complete the Budgeted Income Statement For January
|