QUIZ
#1: CASE ANALYSIS
Instruction:
Determine if your action or decision is ethical or unethical.
Adhering to the
determinants of morality, how are you going to handle the following situations?
1. Your most beloved
person is suffering from painful and incurable disease wherein his life is only
dependent on artificial life-support measures. What will you do if the doctor
asks you to consider the option of signing the waiver to remove the machines or
apparatus that support the life of your loved one?
2. You are a police
officer and you've noticed a person who is trying to break into the house.
3. Your best friend
became pregnant at her old age. It's her first and last opportunity to conceive
a child in her womb. However, in her first check-up, the OB GYN reported that
her 3 months of being pregnant is ectopic. What will you suggest if she
consults her condition to you?
CASE: Part 1
The Blooming Dale
Company’s unadjusted trial balance at December 31 included the following
accounts:
|
Debit
|
Credit
|
Accounts
Receivable
|
P1,500,000
|
|
Allowance
for Doubtful
|
|
40,000
|
Accounts
|
|
|
Sales
|
|
10,000,000
|
Sales
Return & Allowances
|
700,000
|
|
CASE: Part 2
The following analysis
pertains to the account receivable reported in the trial balance.
Classification
|
Balance
of A/R
|
Percentage
Collectible
|
0-1
month category
|
P500,000
|
98%
|
1-6
months category
|
800,000
|
95%
|
Over
6 months
|
200,000
|
80%
|
|
P1,500,000
|
|
Required:
1. Blooming Dale Company
estimates its bad debt expense to be 2% of net sales. Determine its Bad Debt
expense for the year.
CASE: Part 3
Required:
2. Reference to
requirement #1, compute for the allowance for doubtful account end of the year.
3. Blooming Dale Company
estimates its bad debts expense to be 5% of accounts receivable. Compute for
the allowance for doubtful account end of the year.
4. Reference to #3,
determine the bad debts expense for the year.
5. Reference to #3,
compute for the net realizable value of the accounts receivable.
6. Blooming Dale Company
estimates its bad debt expense based on aging. Compute for the allowance for
bad debts at the end of the year.
7. Reference to #7,
compute for the net realizable value of the accounts receivable.