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Running head: MEDIA INFLUENCE ON BODY IMAGE
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MEDIA INFLUENCE ON BODY IMAGE
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Media Influence on Body Image
Michele
Argosy University
Media Influence on Body Image
RQ-Does Reality TV influenced perceived body image in the
adolescent child?
Null (HO) Reality TV does not influenced perceived body
image in the adolescent child.
Research (H1)-Reality TV does influence perceived body image
in the adolescent child.
Outline
Annotated Bibliography
Cusumano, D. K. (2001). Media influence and body image in 8-
11-year-old boys and girls: a preliminary report on the
multidimensional media influence scale. International journal of
eating disorders, 29(1), 37-44.
Research conducted by Cusumano on influence of body image
from the media used a total of 182 participants; 75 boys and 107
girls, 69% of the boys and girls were white, 18% African
American, and 12% were from other races. The participants
were given a packet to fill out during regular school hours in a
classroom setting. The questionnaire used a three point Likert
Scale (1- disagree, 2- Not sure, 3-Agree) the questions were
developmentally appropriate for the subjects ages and grade
level, large font was used to minimize distractions, and the test
consisted of a total of 29 questions to minimize fatigue. The
questionnaire consisted of a practice question to warm the
children up, as well as to confirm that they understood how to
answer the questions. The findings of the research concluded
that females have a higher score confirming that girl’s body
image is influenced by the media. The research is very pertinent
in proving my hypothesis that adolescent girl’s body images are
influenced by the media.
Lawrie, Z., Sullivan, E. A., Davies, P. W., & Hill, R. J. (2006).
Media influence on the body image of children and adolescents.
Eating disorders, 14(5), 355-364.
Lawrie, Sullivan, Davies, and Hill conducted a study using 925
students; 634 girls and 291 boys from both private and public
schools. Ages ranging from nine years of age to 14 years of age
using a “Sociocultural Influence Questionnaire” a five section
questionnaire consisting of 62 questions filled out by students
during class time. Three main questions were “do the media
give the idea that you should be slimmer? Do the media give the
idea that you should gain weight? Do the media give the idea
that you should be more muscular? Answers were assessed
using a Likert-type scare with five responses: strongly agree,
agree, unsure, disagree and strongly disagree. The answers were
then transformed into a score ranging from one to five; a score
of one equals to strongly agree, five strongly disagree. An
overall low test score would indicates greater agreement that the
media does influence, a high score would indicate that there is
minimal agreement that the media influences adolescents.
Conclusion of this study states that girls have a higher score
than boys, meaning that girls are more influenced by the media
than boys. This article fits right in with my theory that the
media has a profound effect on the body image of young girls.
Granatino, R., & Haytko, D. L. (2013). Body image, confidence,
and media influence: A study of middle school adolescents.
Journal of applied business research, 29(1), 45. Retrieved from
http://search.proquest.com/docview/1426770036?accountid=348
99
Granatino and Haytko conducted research to find out if media
influenced body image and testing if there were differences
among African Americans, Hispanics and Caucasians. The test
used a total of 53 subject’s ages ranging from 12-15 years of
age. The study consisted of an open-ended survey with three
basic questions pertaining to the effect of Society and media’s
influence on body image and self-confidence. The questions
were “yes” or “no” questions with results of males being
uninfluenced, African American scored the lowest, Hispanic
females scored the highest. This article fits right in with my
paper to prove that females are highly influenced by the media.
López-Guimerà, G., Levine, M., Sánchez-Carracedo, D., &
Fauquet, J. (2010). Influence of mass media on body image and
eating disordered attitudes and behaviors in females: A review
of effects and processes. Media psychology, 387-416.
doi:1060153269-2010.525737
Research conducted by Lopez, Levine et al, (2010) looks at
many studies conducted on the influence of media on body
images. In one study with 548 participating preadolescents and
adolescents 69% agree that the images portrayed in the media
do influence their conception of body image. 47% stated that
they wanted to lose weight after viewing images of thin women.
Having a multitude of studies in one articles all claiming to
have the same results; body image is influenced by media, is
very important information to prove my point when I put my
paper together.
Spurr, S., Berry, L., & Walker, K. (2013). Exploring adolescent
views of body image: the influence of media. Issues in
comprehensive pediatric nursing, 36(1/2), 17-36.
doi:10.3109/01460862.2013.776145
Spurr, Berry, and Walker conducted research on the influence of
body image using 46 participants; 28 females and 18 males
between the ages of 16-19 from two moderately populated
schools; the adolescents were from multiple cultures and socio-
economic stature. The participants answered questions verbally
(which was recorded) such as “what does psychological
wellness mean to you?” “Are there positive or negative
influences on your psychological wellness?” “Does
psychological wellness contribute to your overall sense of
wellbeing?” The questionnaire lasted for one to two hours long
and was held during regular school hours. Researchers used
Braun and Clarke’s 6-step approach as useful framework to
analyze data. They report this method was effective because it
facilitated their understandings of the world as seen by the
adolescents (Spurr, et al, 2013). The conclusion according to
Spurr, et al was that this was the beginning evidence to support
the theory that the media was an important influence on
adolescent body image. This article is very important for my
paper in proving that the media has an effect on the body image
of adolescents.
Winham, D., & Hampl, J. S. (2008). Adolescents report
television characters do not influence their self-perceptions of
body image, weight, clothing choices or food habits. Young
consumers, 9(2), 121-130.
doi:http://dx.doi.org/10.1108/17473610810879693
This study examines the correlation between factors such as
environment, and mental status and how adolescents’ own
environment plays a role in the effect of media on body images.
Winham & Hampl, (2008) suggest that adolescents that are
affected by media modify the messages heard and what
messages are sought out. This study is important to include
within my paper, in order to create an unbiased research paper.
Tiggemann, M. (2005). Television and adolescent body image:
the role of program content and viewing motivation. Journal of
social and clinical psychology, 24(3), 361-381. Retrieved from
http://search.proquest.com/docview/224841497?accountid=3489
9
The research conducted by Tiggemann, (2005) examines the
relationship between adolescent boys’ and girls’ television
viewing and bod image and the negative effects that are
associated with overexposure. 1,452 secondary school students
participated in the study answering questions associated with
body perception, eating disorders, and uses of television. The
results found that both genders were impacted negatively from
total exposure; boys wanted to be more muscular, girls wanted
to be thinner.
Eisend, M., & Möller, J. (2007). The influence of TV viewing
on consumers' body images and related consumption behavior.
Marketing letters, 18(1-2), 101-116.
doi:http://dx.doi.org/10.1007/s11002-006-9004-8
This study examines the influence of TV viewing with female
and male consumer’s body image. The conclusion to this study
states that the negative effects of viewing were not found.
However on the females the effects were quite profound. This
study also indicates that the beauty industry has been benefiting
from the increased body dissatisfaction; women are willing to
undergo dangerous surgeries to achieve the look that is
portrayed on television.
Strasburger, V. C., M.D. (1985). Television and adolescents.
Pediatric annals, 14(12), 814-815,818-820. Retrieved from
http://search.proquest.com/docview/1023310886?accountid=348
99
The article written by Strasburger, (1985) depicts how
television has changed over the years. Wholesome television
programs no longer exist. Adolescents are exposed to unrealistic
programs filled with sexuality, alcohol, and characters that
seem to all be thin. Exposure to this type of unrealistic
programs can create false realities in life.
Derenne, J. L., & Beresin, E. V. (2006). Body image, media,
and eating disorders. Academic psychiatry, 30(3), 257-61.
Retrieved from
http://search.proquest.com/docview/196508089?accountid=3489
9
This article examines images portrayed on television and how
young girls model what they view on TV. Derenne and Beresin
suggest that parents should monitor what their children are
watching and how long they spend in front of the TV.
BWeek Two Exercise Assignment
Revenue and Expenses
1. Recognition of concepts. Jim Armstrong operates a small
company that books entertainers for theaters, parties,
conventions, and so forth. The company’s fiscal year ends on
June 30. Consider the following items and classify each as
either (1) prepaid expense, (2) unearned revenue, (3) accrued
expense, (4) accrued revenue, or (5) none of the foregoing.
a Interest owed on the company's bank loan, to be paid in
early July
b Professional fees earned but not billed as of June 30
c Office supplies on hand at year-end
d An advance payment from a client for a performance next
month at a convention
e The payment in part (d) from the client's point of view
f Amounts paid on June 30 for a 1-year insurance policy
g The bank loan payable in part (a)
h Repairs to the firm's copy machine, incurred and paid in
June
2. Understanding the closing process. Examine the following
list of accounts:
Note Payable
Accumulated Depreciation: Building
Alex Kenzy, Drawing
Accounts Payable
Product Revenue
Cash
Accounts Receivable
Supplies Expense
Utility Expense
Which of the preceding accounts
a. appear on a post-closing trial balance?
b. are commonly known as temporary, or nominal, accounts?
c. generate a debit to Income Summary in the closing process?
d. are closed to the capital account in the closing process?
3. Adjusting entries and financial statements. The following
information pertains to Sally Corporation:
· The company previously collected $1,500 as an advance
payment for services to be rendered in the future. By the end of
December, one half of this amount had been earned.
· Sally Corporation provided $1,500 of services to Artech
Corporation; no billing had been made by December 31.
· Salaries owed to employees at year-end amounted to $1,000.
· The Supplies account revealed a balance of $8,800, yet only
$3,300 of supplies were actually on hand at the end of the
period.
· The company paid $18,000 on October 1 of the current year to
Vantage Property Management. The payment was for 6 months’
rent of Sally Corporation’s headquarters, beginning on
November 1.
Sally Corporation’s accounting year ends on December 31.
Instructions
Analyze the five preceding cases individually and determine the
following:
a. The type of adjusting entry needed at year-end (Use the
following codes: A, adjustment of a prepaid expense; B,
adjustment of an unearned revenue; C, adjustment to record an
accrued expense; or D, adjustment to record an accrued
revenue.)
b. The year-end journal entry to adjust the accounts
c. The income statement impact of each adjustment (e.g.,
increases total revenues by $500)
4. Adjusting entries. You have been retained to examine the
records of Mary’s Day Care Center as of December 31, 20X3,
the close of the current reporting period. In the course of your
examination, you discover the following:
· On January 1, 20X3, the Supplies account had a balance of
$1,350. During the year, $5,520 worth of supplies was
purchased, and a balance of $1,620 remained unused on
December 31.
· Unrecorded interest owed to the center totaled $275 as of
December 31.
· All clients pay tuition in advance, and their payments are
credited to the Unearned Tuition Revenue account. The account
was credited for $65,500 on August 31. With the exception of
$15,500 all amounts were for the current semester ending on
December 31.
· Depreciation on the school’s van was $3,000 for the year.
· On August 1, the center began to pay rent in 6-month
installments of $24,000. Mary wrote a check to the owner of the
building and recorded the check in Prepaid Rent, a new account.
· Two salaried employees earn $400 each for a 5-day week. The
employees are paid every Friday, and December 31 falls on a
Thursday.
· Mary’s Day Care paid insurance premiums as follows, each
time debiting Prepaid Insurance:
Date Paid
Policy No.
Length of Policy
Amount
Feb. 1, 20X2
1033MCM19
1 year
$540
Jan. 1, 20X3
7952789HP
1 year
912
Aug. 1, 20X3
XQ943675ST
2 years
840
Instructions
The center’s accounts were last adjusted on December 31,
20X2. Prepare the adjusting entries necessary under the accrual
basis of accounting.
5. Bank reconciliation and entries. The following information
was taken from the accounting records of Palmetto Company for
the month of January:
Balance per bank
$6,150
Balance per company records
3,580
Bank service charge for January
20
Deposits in transit
940
Interest on note collected by bank
100
Note collected by bank
1,000
NSF check returned by the bank with the bank statement
650
Outstanding checks
3,080
Instructions:
a. Prepare Palmetto’s January bank reconciliation.
b. Prepare any necessary journal entries for Palmetto.
6. Direct write-off method. Harrisburg Company, which began
business in early 20X7, reported $40,000 of accounts receivable
on the December 31, 20X7, balance sheet. Included in this
amount was $550 for a sale made to Tom Mattingly in July. On
January 4, 20X8, the company learned that Mattingly had filed
for personal bankruptcy. Harrisburg uses the direct write-off
method to account for uncollectibles.
a. Prepare the journal entry needed to write off Mattingly’s
account.
b. Comment on the ability of the direct write-off method to
value receivables on the year-end balance sheet.
7. Allowance method: analysis of receivables. At a January
20X2 meeting, the president of Sonic Sound directed the sales
staff “to move some product this year.” The president noted that
the credit evaluation department was being disbanded because it
had restricted the company’s growth. Credit decisions would
now be made by the sales staff.
By the end of the year, Sonic had generated significant gains in
sales, and the president was very pleased. The following data
were provided by the accounting department:
20X2
20X1
Sales
$23,987,000
$8,423,000
Accounts Receivable, 12/31
12,444,000
1,056,000
Allowance for Uncollectible Accounts, 12/31
?
23,000 cr.
The $12,444,000 receivables balance was aged as follows:
Age of Receivable
Amount
Percentage of Accounts Expected to Be Collected
Under 31 days
$4,321,000
99%
31-60 days
4,890,000
90
61-90 days
1,067,000
80
Over 90 days
2,166,000
60
Assume that no accounts were written off during 20X2.
Instructions
a. Estimate the amount of Uncollectible Accounts as of
December 31, 20X2.
b. What is the company’s Uncollectible Accounts expense for
20X2?
c. Compute the net realizable value of Accounts Receivable at
the end of 20X1 and 20X2.
d. Compute the net realizable value at the end of 20X1 and
20X2 as a percentage of respective year-end receivables
balances. Analyze your findings and comment on the president’s
decision to close the credit evaluation department.

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Running head MEDIA INFLUENCE ON BODY IMAGE .docx

  • 1. Running head: MEDIA INFLUENCE ON BODY IMAGE 1 MEDIA INFLUENCE ON BODY IMAGE 2 Media Influence on Body Image Michele Argosy University Media Influence on Body Image RQ-Does Reality TV influenced perceived body image in the adolescent child? Null (HO) Reality TV does not influenced perceived body image in the adolescent child. Research (H1)-Reality TV does influence perceived body image in the adolescent child. Outline Annotated Bibliography Cusumano, D. K. (2001). Media influence and body image in 8- 11-year-old boys and girls: a preliminary report on the multidimensional media influence scale. International journal of eating disorders, 29(1), 37-44. Research conducted by Cusumano on influence of body image from the media used a total of 182 participants; 75 boys and 107 girls, 69% of the boys and girls were white, 18% African American, and 12% were from other races. The participants were given a packet to fill out during regular school hours in a classroom setting. The questionnaire used a three point Likert Scale (1- disagree, 2- Not sure, 3-Agree) the questions were
  • 2. developmentally appropriate for the subjects ages and grade level, large font was used to minimize distractions, and the test consisted of a total of 29 questions to minimize fatigue. The questionnaire consisted of a practice question to warm the children up, as well as to confirm that they understood how to answer the questions. The findings of the research concluded that females have a higher score confirming that girl’s body image is influenced by the media. The research is very pertinent in proving my hypothesis that adolescent girl’s body images are influenced by the media. Lawrie, Z., Sullivan, E. A., Davies, P. W., & Hill, R. J. (2006). Media influence on the body image of children and adolescents. Eating disorders, 14(5), 355-364. Lawrie, Sullivan, Davies, and Hill conducted a study using 925 students; 634 girls and 291 boys from both private and public schools. Ages ranging from nine years of age to 14 years of age using a “Sociocultural Influence Questionnaire” a five section questionnaire consisting of 62 questions filled out by students during class time. Three main questions were “do the media give the idea that you should be slimmer? Do the media give the idea that you should gain weight? Do the media give the idea that you should be more muscular? Answers were assessed using a Likert-type scare with five responses: strongly agree, agree, unsure, disagree and strongly disagree. The answers were then transformed into a score ranging from one to five; a score of one equals to strongly agree, five strongly disagree. An overall low test score would indicates greater agreement that the media does influence, a high score would indicate that there is minimal agreement that the media influences adolescents. Conclusion of this study states that girls have a higher score than boys, meaning that girls are more influenced by the media than boys. This article fits right in with my theory that the media has a profound effect on the body image of young girls.
  • 3. Granatino, R., & Haytko, D. L. (2013). Body image, confidence, and media influence: A study of middle school adolescents. Journal of applied business research, 29(1), 45. Retrieved from http://search.proquest.com/docview/1426770036?accountid=348 99 Granatino and Haytko conducted research to find out if media influenced body image and testing if there were differences among African Americans, Hispanics and Caucasians. The test used a total of 53 subject’s ages ranging from 12-15 years of age. The study consisted of an open-ended survey with three basic questions pertaining to the effect of Society and media’s influence on body image and self-confidence. The questions were “yes” or “no” questions with results of males being uninfluenced, African American scored the lowest, Hispanic females scored the highest. This article fits right in with my paper to prove that females are highly influenced by the media. López-Guimerà, G., Levine, M., Sánchez-Carracedo, D., & Fauquet, J. (2010). Influence of mass media on body image and eating disordered attitudes and behaviors in females: A review of effects and processes. Media psychology, 387-416. doi:1060153269-2010.525737 Research conducted by Lopez, Levine et al, (2010) looks at many studies conducted on the influence of media on body images. In one study with 548 participating preadolescents and adolescents 69% agree that the images portrayed in the media do influence their conception of body image. 47% stated that they wanted to lose weight after viewing images of thin women. Having a multitude of studies in one articles all claiming to have the same results; body image is influenced by media, is very important information to prove my point when I put my paper together.
  • 4. Spurr, S., Berry, L., & Walker, K. (2013). Exploring adolescent views of body image: the influence of media. Issues in comprehensive pediatric nursing, 36(1/2), 17-36. doi:10.3109/01460862.2013.776145 Spurr, Berry, and Walker conducted research on the influence of body image using 46 participants; 28 females and 18 males between the ages of 16-19 from two moderately populated schools; the adolescents were from multiple cultures and socio- economic stature. The participants answered questions verbally (which was recorded) such as “what does psychological wellness mean to you?” “Are there positive or negative influences on your psychological wellness?” “Does psychological wellness contribute to your overall sense of wellbeing?” The questionnaire lasted for one to two hours long and was held during regular school hours. Researchers used Braun and Clarke’s 6-step approach as useful framework to analyze data. They report this method was effective because it facilitated their understandings of the world as seen by the adolescents (Spurr, et al, 2013). The conclusion according to Spurr, et al was that this was the beginning evidence to support the theory that the media was an important influence on adolescent body image. This article is very important for my paper in proving that the media has an effect on the body image of adolescents. Winham, D., & Hampl, J. S. (2008). Adolescents report television characters do not influence their self-perceptions of body image, weight, clothing choices or food habits. Young consumers, 9(2), 121-130. doi:http://dx.doi.org/10.1108/17473610810879693 This study examines the correlation between factors such as environment, and mental status and how adolescents’ own environment plays a role in the effect of media on body images. Winham & Hampl, (2008) suggest that adolescents that are affected by media modify the messages heard and what messages are sought out. This study is important to include
  • 5. within my paper, in order to create an unbiased research paper. Tiggemann, M. (2005). Television and adolescent body image: the role of program content and viewing motivation. Journal of social and clinical psychology, 24(3), 361-381. Retrieved from http://search.proquest.com/docview/224841497?accountid=3489 9 The research conducted by Tiggemann, (2005) examines the relationship between adolescent boys’ and girls’ television viewing and bod image and the negative effects that are associated with overexposure. 1,452 secondary school students participated in the study answering questions associated with body perception, eating disorders, and uses of television. The results found that both genders were impacted negatively from total exposure; boys wanted to be more muscular, girls wanted to be thinner. Eisend, M., & Möller, J. (2007). The influence of TV viewing on consumers' body images and related consumption behavior. Marketing letters, 18(1-2), 101-116. doi:http://dx.doi.org/10.1007/s11002-006-9004-8 This study examines the influence of TV viewing with female and male consumer’s body image. The conclusion to this study states that the negative effects of viewing were not found. However on the females the effects were quite profound. This study also indicates that the beauty industry has been benefiting from the increased body dissatisfaction; women are willing to undergo dangerous surgeries to achieve the look that is portrayed on television. Strasburger, V. C., M.D. (1985). Television and adolescents. Pediatric annals, 14(12), 814-815,818-820. Retrieved from http://search.proquest.com/docview/1023310886?accountid=348 99 The article written by Strasburger, (1985) depicts how television has changed over the years. Wholesome television programs no longer exist. Adolescents are exposed to unrealistic programs filled with sexuality, alcohol, and characters that
  • 6. seem to all be thin. Exposure to this type of unrealistic programs can create false realities in life. Derenne, J. L., & Beresin, E. V. (2006). Body image, media, and eating disorders. Academic psychiatry, 30(3), 257-61. Retrieved from http://search.proquest.com/docview/196508089?accountid=3489 9 This article examines images portrayed on television and how young girls model what they view on TV. Derenne and Beresin suggest that parents should monitor what their children are watching and how long they spend in front of the TV. BWeek Two Exercise Assignment Revenue and Expenses 1. Recognition of concepts. Jim Armstrong operates a small company that books entertainers for theaters, parties, conventions, and so forth. The company’s fiscal year ends on June 30. Consider the following items and classify each as either (1) prepaid expense, (2) unearned revenue, (3) accrued expense, (4) accrued revenue, or (5) none of the foregoing. a Interest owed on the company's bank loan, to be paid in early July b Professional fees earned but not billed as of June 30 c Office supplies on hand at year-end d An advance payment from a client for a performance next month at a convention e The payment in part (d) from the client's point of view f Amounts paid on June 30 for a 1-year insurance policy g The bank loan payable in part (a) h Repairs to the firm's copy machine, incurred and paid in June
  • 7. 2. Understanding the closing process. Examine the following list of accounts: Note Payable Accumulated Depreciation: Building Alex Kenzy, Drawing Accounts Payable Product Revenue Cash Accounts Receivable Supplies Expense Utility Expense Which of the preceding accounts a. appear on a post-closing trial balance? b. are commonly known as temporary, or nominal, accounts? c. generate a debit to Income Summary in the closing process? d. are closed to the capital account in the closing process? 3. Adjusting entries and financial statements. The following information pertains to Sally Corporation: · The company previously collected $1,500 as an advance payment for services to be rendered in the future. By the end of December, one half of this amount had been earned. · Sally Corporation provided $1,500 of services to Artech Corporation; no billing had been made by December 31. · Salaries owed to employees at year-end amounted to $1,000. · The Supplies account revealed a balance of $8,800, yet only $3,300 of supplies were actually on hand at the end of the period. · The company paid $18,000 on October 1 of the current year to Vantage Property Management. The payment was for 6 months’ rent of Sally Corporation’s headquarters, beginning on November 1. Sally Corporation’s accounting year ends on December 31. Instructions Analyze the five preceding cases individually and determine the
  • 8. following: a. The type of adjusting entry needed at year-end (Use the following codes: A, adjustment of a prepaid expense; B, adjustment of an unearned revenue; C, adjustment to record an accrued expense; or D, adjustment to record an accrued revenue.) b. The year-end journal entry to adjust the accounts c. The income statement impact of each adjustment (e.g., increases total revenues by $500) 4. Adjusting entries. You have been retained to examine the records of Mary’s Day Care Center as of December 31, 20X3, the close of the current reporting period. In the course of your examination, you discover the following: · On January 1, 20X3, the Supplies account had a balance of $1,350. During the year, $5,520 worth of supplies was purchased, and a balance of $1,620 remained unused on December 31. · Unrecorded interest owed to the center totaled $275 as of December 31. · All clients pay tuition in advance, and their payments are credited to the Unearned Tuition Revenue account. The account was credited for $65,500 on August 31. With the exception of $15,500 all amounts were for the current semester ending on December 31. · Depreciation on the school’s van was $3,000 for the year. · On August 1, the center began to pay rent in 6-month installments of $24,000. Mary wrote a check to the owner of the building and recorded the check in Prepaid Rent, a new account. · Two salaried employees earn $400 each for a 5-day week. The employees are paid every Friday, and December 31 falls on a Thursday. · Mary’s Day Care paid insurance premiums as follows, each time debiting Prepaid Insurance: Date Paid
  • 9. Policy No. Length of Policy Amount Feb. 1, 20X2 1033MCM19 1 year $540 Jan. 1, 20X3 7952789HP 1 year 912 Aug. 1, 20X3 XQ943675ST 2 years 840 Instructions The center’s accounts were last adjusted on December 31, 20X2. Prepare the adjusting entries necessary under the accrual basis of accounting. 5. Bank reconciliation and entries. The following information was taken from the accounting records of Palmetto Company for the month of January: Balance per bank $6,150 Balance per company records 3,580 Bank service charge for January 20 Deposits in transit 940 Interest on note collected by bank 100 Note collected by bank 1,000
  • 10. NSF check returned by the bank with the bank statement 650 Outstanding checks 3,080 Instructions: a. Prepare Palmetto’s January bank reconciliation. b. Prepare any necessary journal entries for Palmetto. 6. Direct write-off method. Harrisburg Company, which began business in early 20X7, reported $40,000 of accounts receivable on the December 31, 20X7, balance sheet. Included in this amount was $550 for a sale made to Tom Mattingly in July. On January 4, 20X8, the company learned that Mattingly had filed for personal bankruptcy. Harrisburg uses the direct write-off method to account for uncollectibles. a. Prepare the journal entry needed to write off Mattingly’s account. b. Comment on the ability of the direct write-off method to value receivables on the year-end balance sheet. 7. Allowance method: analysis of receivables. At a January 20X2 meeting, the president of Sonic Sound directed the sales staff “to move some product this year.” The president noted that the credit evaluation department was being disbanded because it had restricted the company’s growth. Credit decisions would now be made by the sales staff. By the end of the year, Sonic had generated significant gains in sales, and the president was very pleased. The following data were provided by the accounting department: 20X2 20X1 Sales $23,987,000 $8,423,000
  • 11. Accounts Receivable, 12/31 12,444,000 1,056,000 Allowance for Uncollectible Accounts, 12/31 ? 23,000 cr. The $12,444,000 receivables balance was aged as follows: Age of Receivable Amount Percentage of Accounts Expected to Be Collected Under 31 days $4,321,000 99% 31-60 days 4,890,000 90 61-90 days 1,067,000 80 Over 90 days 2,166,000 60 Assume that no accounts were written off during 20X2. Instructions a. Estimate the amount of Uncollectible Accounts as of December 31, 20X2. b. What is the company’s Uncollectible Accounts expense for 20X2? c. Compute the net realizable value of Accounts Receivable at the end of 20X1 and 20X2. d. Compute the net realizable value at the end of 20X1 and 20X2 as a percentage of respective year-end receivables
  • 12. balances. Analyze your findings and comment on the president’s decision to close the credit evaluation department.