Question : 64) The Flying Pigs rugby team went bankrupt and owed : 1253211

Accounting

64) The Flying Pigs rugby team went bankrupt and owed Team Shirts $364. Using the accounting equation format, prepare the entry to record the write-off. Include the account titles and amounts.

Shareholders’ equity

Assets

Liab.

Retained earnings

65) Team Instructions: Divide the class into teams of three or four people. Each team member should work the following problem separately outside of class. Then give the students time in class to compare answers with their teammates and put together a final correct copy of the problem. Each team should turn in only one copy of the problem for grading, along with the annual report used. All team members will receive the same grade.

Provide students with copies of real merchandising companies’ annual reports, or give students the Web addresses of real merchandising companies and ask them to print out the annual reports. All team members should work with the same company’s annual report.

Answer the following questions using the annual report assigned to your team:

Part A: Complete the following chart:

Current year

Prior Year

Accounts receivable (gross)

Allowance for uncollectible accounts

Accounts receivable (net)

Allowance as a percentage of gross accounts receivable

Part B: Is the company’s estimate of uncollectible accounts increasing or decreasing?

Part C: Why might a company’s estimate of uncollectible accounts change?

66) Since C.D. Lee’s bonus is tied to net income, he decided to underestimate the bad debts expense for the year ended December 31, 2012. Which 2012 financial statements will be impacted by this underestimate of bad debts expense? Since bad debts expense is just an estimate, is this treatment ethical?

67) Match each of the statements below with the appropriate item. Each item is used only once.

a. Accounts receivable

b. Bad debts expense

c. Write-off

d. Allowance for uncollectible accounts

_____ 1. The contra account for accounts receivable has a balance of $(575).

_____ 2. The total amount that customers owe Seven Seas that is estimated to be uncollectible is $657.

_____ 3. The total amount customers owe on account is $3,124.

_____ 4. Clara Frye declared bankruptcy while owing Seven Seas $500. The accountant for Seven Seas has determined that this amount is now uncollectible. He closes the Frye account.

_____ 5. The accountant for Seven Seas determined that 2% of the May sales of $17,000 would be uncollectible. This amount was recorded as of May 31.

68) Match each of the statements below with the appropriate item. Each item is used only once.

a. Accounts receivable

b. Bad debts expense

c. Write-off

d. Allowance for uncollectible accounts

_____ 1. Three percent of the $2,000 credit sales for November are estimated to be uncollectible. That amount is recorded in the books as of November 30.

_____ 2. Joy Dow declared bankruptcy. Her account is no longer collectible. The accountant for Team Shirts closes the Dow account.

_____ 3. The contra account for accounts receivable has a balance of $(475).

_____ 4. Team Shirts is owed for T-shirts sold on account.

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July 1, 2023

Distinguishing Inductive and Deductive Reasoning

Required Resources
Read/review the following resources for this activity:

· Textbook: Chapter 8, 9, 17 (Introduction)

· Lesson

· Minimum of 1 scholarly source (in addition to the textbook)

Click on the following tabs to review the concepts that will be addressed in this activity:

A valid structure is the way in which an argument is put together that assures it will pass the test of logical strength.

Deductive: In deductive arguments, the speaker asserts that her premises are true and, therefore, her conclusion must be accepted. Remember that in a deductive argument, logical strength does not depend on the literal truth of the premises. When we test for logical strength, we assume the premises are true. Once we determine that the argument is logically valid, we can then look at the actual – not presumed – truth of the premises.

Inductive: In inductive arguments, the speaker presents evidence that she claims support the probable truth of her conclusion – that her conclusion is the most likely true – and so you should accept it.

The Basic Structure of Deductive and Inductive Arguments
Argument examples:

Deductive Argument Example: “Tightening laws restricting the use and possession of firearms does not protect average law-abiding citizens; it only puts them at greater risk. Enforcing licensing restrictions, trigger locks, and waiting periods makes it more difficult for law-abiding citizens to defend themselves, and, as a result, encourages criminal activity. Only criminals benefit when ordinary citizens are deprived of their right to own a firearm and protect themselves, their homes, and their families" (Lott, 2000, p. 169)

Lott, J., (2000). More guns, less crime: Understanding crime and gun-control laws. University of Chicago Press.

The argument boils down to this:

· Laws that are obeyed by ordinary citizens and not obeyed by criminals are laws that put ordinary citizens at risk.

· Tight gun laws are laws that are obeyed only by ordinary citizens.

· Tight gun laws put ordinary citizens at risk.

However, the argument itself is composed of three intertwined syllogisms:

Only ordinary citizens are persons who respect tight gun laws.
Criminal persons are not ordinary citizens.
Therefore, criminals do not respect tight gun laws.

Tight gun laws restrict only ordinary citizens.
No criminal is an ordinary citizen.
No criminal is restricted by tight gun laws.

Laws that disfavor the good are laws that favor the bad.
Tight gun laws favor the bad.
Therefore, tight gun laws disfavor the good.

Notice that you cannot remove any of the “legs” and maintain the claim. Notice, also, that the reasons are closely connected and depend on or follow from each other. Notice, also, that the first premise (called the major premise) must be accepted as true, or the entire argument fails.

Inductive Argument: The United States is too dependent upon foreign oil. According to the U.S. Department of Energy, we rely on imported foreign oil for about 45% of our needs. Of the imported oil, most comes from Canada, but 22% comes from countries in the Middle East. Undeniably, this dependence shapes our foreign policy. We have vast oil reserves that could make us energy independent. Development of these resources would produce much-needed jobs, many of them in areas of the country suffering most from the recession. We should be developing an energy policy that makes us energy independent.

· Reason: We import 45% of our oil.

· Reason: Middle East oil imports shape our foreign policy.

· Reason: Our vast oil reserves could make us energy independent.

· Reason: Development of oil reserves could produce much needed jobs.

· Conclusion: For any or all of the above, independent reasons, we should become energy independent.

Notice that any one of these reasons, standing alone, could support the conclusions; they are not logically related to one another as they would be in a syllogism.

Initial Post Instructions
For the initial post, address the following:

· Find and post examples of deductive and inductive arguments. Do NOT use an argument example which clearly indicates it is an example of an inductive/deductive argument.

· For each example, evaluate its logical strength, using the concepts and ideas presented in the textbook readings, the lesson, and any other source you find that helps you to evaluate the validity (deductive) or strength (inductive) of the argument. You can use examples from the text, or you can find examples elsewhere.

oEditorials and opinion columns are a good source, as are letters to the editor. Blogs will also often be based on arguments.

oUse mapping and evaluative techniques to make sure it is an argument.

· Is it inductive or deductive? Explain why.

· Does it pass the tests of validity and strength? Explain.