© 2013 Cengage Learning. All
r
ights reserved. No
d
is
t
r
ibution allowed without express
a
u
t
hor
ization.
Sales Revenue
Ca
Solutions8-32
8.40 (Stone Pest Control; revenue recognition at and after time
of sale.) (amounts in US$)
a. January 4, 2013: Journal entry to record revenue for
pest control services rendered.
Assets = Liabilities +
Shareholders’
Equity (Class.)
b. January 4, 2013: Journal entry to record pest control
services rendered for cash.
Assets = Liabilities +
Shareholders’
Equity (Class.)
c. The contract has three elements: quarterly service (selling
price of
$320 = $80 per service X 4 service calls per year), termite
January 4, 2013: Journal entry to record contract for pest
control services.
(1)
2012
Accounts Receivable Turnover
2011 2010
(2) Bad Debt Expense/Revenues
2012: ¥1,084/¥1,891,466 …………………………..
300
Assets = Liabilities +
Shareholders’
Equity (Class.)
+300 +300
8-33Solutions
Allowance for
Solutions8-36
8.41 continued.
b.
8-37Solutions
8.42 (Polaris Corporation; analyzing changes in accounts receivable.)
(amounts in millions of US$)
a.
2013 2012 2011 2010
Allowance for Uncollectible
Accounts, Beginning of
Year…….
$
138.1
$
115.1
$
111.0
$
97.8
Plus Bad Debt Expe
ns
e
………………
36.8 40.1 20.1
20.
1
Less Accounts Written Off (Plug)
..
(
2
.
9
)
(
1
7
. 1
(
1
6
. 0
(
6
.
9
)
Allowance for Uncollectible
Accounts, End of
Year……………..
$
17
2
.0
$
13
8
.1
$
11
5
.1
$
11
1
.0
b. 2013 2012 2011
2010
© 2013 Cengage Learning. All
r
ights reserved. No
d
is
t
r
ibution allowed without express
a
u
t
hor
ization.
c.2013 2012 2011
2010
$3 ,
271 .
4
aTotal Sales X 0.25.
d. Total Sales/Average Accounts 2013 2012 2011
2010
Solutions8-32
8.40 (Stone Pest Control; revenue recognition at and after time
of sale.) (amounts in US$)
a. January 4, 2013: Journal entry to record revenue for
pest control services rendered.
Assets = Liabilities +
Shareholders’
Equity (Class.)
b. January 4, 2013: Journal entry to record pest control
services rendered for cash.
Assets = Liabilities +
Shareholders’
Equity (Class.)
c. The contract has three elements: quarterly service (selling
price of
$320 = $80 per service X 4 service calls per year), termite
January 4, 2013: Journal entry to record contract for pest
control services.
(1)
2012
Accounts Receivable Turnover
2011 2010
(2) Bad Debt Expense/Revenues
2012: ¥1,084/¥1,891,466 …………………………..
300
Assets = Liabilities +
Shareholders’
Equity (Class.)
+300 +300
8-33Solutions
Allowance for
Solutions8-36
8.41 continued.
b.
8-37Solutions
8.42 (Polaris Corporation; analyzing changes in accounts receivable.)
(amounts in millions of US$)
a.
2013 2012 2011 2010
Allowance for Uncollectible
Accounts, Beginning of
Year…….
$
138.1
$
115.1
$
111.0
$
97.8
Plus Bad Debt Expe
ns
e
………………
36.8 40.1 20.1
20.
1
Less Accounts Written Off (Plug)
..
(
2
.
9
)
(
1
7
. 1
(
1
6
. 0
(
6
.
9
)
Allowance for Uncollectible
Accounts, End of
Year……………..
$
17
2
.0
$
13
8
.1
$
11
5
.1
$
11
1
.0
b. 2013 2012 2011
2010
© 2013 Cengage Learning. All
r
ights reserved. No
d
is
t
r
ibution allowed without express
a
u
t
hor
ization.
c.2013 2012 2011
2010
$3 ,
271 .
4
aTotal Sales X 0.25.
d. Total Sales/Average Accounts 2013 2012 2011
2010