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The operations of Winston Corporation are divided into the Blink Division and the Blur Division. Projections for the next year are as follows: Blink Division Blur Division Total Sales $280,000 $168,000 $448,000 Variable costs 98,000 77,000 175,000 Contribution margin $182,000 $91,000 $273,000 Direct fixed costs 84,000 70,000 154,000 Segment margin $98,000 $21,000 $119,000 Allocated common costs 42,000 31,500 73,500 Operating income (loss) $56,000 ($10,500) $45,500 Operating income for Winston Corporation as a whole if the Blur Division were dropped would be: a. $66,500. b. $56,000. c. $45,500. d, $24,500.
Craigmont uses the allowance method to account for uncollectible accounts. Its year-end unadjusted trial balance shows Accounts Receivable of $104,500, allowance for doubtful accounts of $665 (credit) and sales of $925,000. If uncollectible accounts are estimated to be 0.5% of sales, what is the amount of the bad debts expense adjusting entry? A. $4,625 B. $3,960 C. $5,290 D. $4,750 E. $4,825 57,1 17.
a. Insurance expense 2,807 Prepaid insurance 2,807b. Teaching supplies expense 2,433 Teaching supplies 2,433c. Depreciation expenseEquipment 11,227 Accumulated depreciationEquipment 11,277d. Depreciation expenseProfessional library 5,614 Accumulated depreciationProfessional library 5,614e. Unearned training fees 2,700 Training fees earned 2,700f. Accounts receivable 2,819 Tuition fees earned 2,819g. Salaries expense 100 Salaries payable 100h. Rent expense 2,097 Prepaid rent 2,097Wells Technical Institute (WTI), a school owned by Tristana Wells, provides training to individuals who pay tuition directly to the school. WTI also offers training to groups in off-site locations. Its unadjusted trial balance as of December 31, 2017, follows. WTI initially records prepaid expenses and unearned revenues in balance sheet accounts. Descriptions of items a through h that require adjusting entries on December 31, 2017, follow.Additional Information:a. An analysis of WTI's insurance policies shows that $2,807 of coverage has expired. b. An inventory count shows that teaching supplies costing $2,433 are available at year-end 2017. c. Annual depreciation on the equipment is $11,227. Annual depreciation on the professional library is $5,614. d. On November 1, WTI agreed to do a special six-month course (starting immediately) for a client. The contract calls for a monthly fee of $2,900, and the client paid the first five months' fees in advance. When the cash was received, the Unearned Training Fees account was credited. The fee for the sixth month will be recorded when it is collected in 2018. On October 15, WTI agreed to teach a four-month class (beginning immediately) for an individual for $2,619 tuition per month payable at the end of the class. The class started on October 15, but no payment has yet been received. (WTI's accruals are applied to the nearest half-month; for example, October recognizes one-half month accrual.) WTI's two employees are paid weekly. As of the end of the year, two days' salaries have accrued at the rate of $100 per day for each employee. The balance in the Prepaid Rent account represents rent for December.