The following information is from the 2015 records of armand camera shop: accounts receivable, december 31, 2015 $40,000 (debit) allowance for doubtful accounts, december 31, 2015 prior to adjustment 1,500 (debit) net credit sales for 2015 175,000 accounts written off as uncollectible during 2015 15,000 cash sales during 2015 27,000 bad debts expense is estimated by the percent-of-sales method. the management estimates that 3% of net credit sales will be uncollectible. calculate the amount of bad debts expense for 2015 and prepare the journal entry.

Down under products, ltd., of australia has budgeted sales of its popular boomerang for the next four months as follows: unit salesapril 74,000may 85,000june 114,000july 92,000the company is now in the process of preparing a production budget for the second quarter. past experience has shown that end-of-month inventory levels must equal 10% of the following month’s unit sales. the inventory at the end of march was 7,400 units.required: prepare a production budget by month and in total, for the second quarter.

Lin corporation has a single product whose selling price is $136 per unit and whose variable expense is $68 per unit. the company’s monthly fixed expense is $32,400. required: 1. calculate the unit sales needed to attain a target profit of $5,000. (do not round intermediate calculations.) 2. calculate the dollar sales needed to attain a target profit of $8,400.

Google started as one of many internet search engines, amazon started as an online book seller, and ebay began as a site where people could sell used personal items in auctions. these firms have grown to be so large and dominant that they are facing antitrust scrutiny from competition regulators in the us and elsewhere. did these online giants grow by fairly beating competition, or did they use unfair advantages? are there any clouds on the horizon for these firms -- could they face diseconomies of scale or diseconomies of scope as they continue to grow? if so, what factors may limit their continued growth?