Sunset Surfwear, a California-based merchandising store, had the following sales and cash receipt transactions for January. The partial chart of accounts for Sunset Surfwear follows. $$ \begin{array}{ll} \text{General Ledger} & \text{ }\\ \text{101 Cash in Bank} & \text{401 Sales}\\ \text{115 Accounts Receivable} & \text{405 Sales Discounts}\\ \text{215 Sales Tax Payable} & \text{410 Sales Returns and Allowances}\\ \end{array} $$ $$ \begin{array}{ll} \text{Accounts Receivable Subsidiary Ledger} & \text{ }\\ \text{ADA Adams, Martha} & \text{MOU Moulder, Nate}\\ \text{HAM Hamilton, Alex} & \text{WES Westwood High School Athletics}\\ \text{JUN1 Jun, Helen} & \text{ }\\ \end{array} $$ Record the following transactions on page 20 of the general journal. $$ \begin{array} \text{Date} & \text{Transactions}\\ \text{Jan. 1} & \text{Sold \$300 in merchandise plus a sales tax of \$18 on account to }\\ \text{ } & \text{Martha Adams, Sales Slip 777.}\\ \text{5} & \text{Sold \$1,500 in merchandise on account to Westwood High}\\ \text{ } & \text{School Athletics, Sales Slip 778.}\\ \text{7} & \text{Received \$400 from Alex Hamilton on account, Receipt 345.}\\ \text{10} & \text{Issued Credit Memorandum 102 to Martha Adams for \$318}\\ \text{ } & \text{covering \$300 in returned merchandise plus \$18 sales tax.}\\ \text{15} & \text{Recorded cash sales of \$800 plus \$48 in sales tax, Tape 39.}\\ \text{15} & \text{Recorded bankcard sales of \$900 plus \$54 in sales tax,}\\ \text{ } & \text{Tape 39.}\\ \text{20} & \text{Received \$1,500 from Westwood High School Athletics in }\\ \text{ } & \text{payment of Sales Slip 778, Receipt 346.}\\ \text{25} & \text{Sold \$1,200 in merchandise plus sales tax of \$72 on account to}\\ \text{ } & \text{Helen Jun, Sales Slip 779.}\\ \text{28} & \text{Granted a \$106 sales allowance to Helen Jun, which includes}\\ \text{ } & \text{\$100 for damaged merchandise she kept and sales tax of \$6,}\\ \text{ } & \text{Credit Memorandum 103.}\\ \text{30} & \text{Received \$500 from a charge customer, Nate Moulder, in }\\ \text{ } & \text{payment of his \$500 account, Receipt 347.}\\ \end{array} $$

Shutterbug Cameras had the following transactions during January. The partial chart of accounts for Shutterbug is shown here. $$ \begin{array}{ll} \text{General Ledger} & \text{ }\\ \text{101 Cash in Bank} & \text{401 Sales}\\ \text{115 Accounts Receivable} & \text{405 Sales Discounts}\\ \text{130 Supplies} & \text{410 Sales Returns and Allowances}\\ \text{215 Sales Tax Payable} & \text{ }\\ \end{array} $$ $$ \begin{array}{ll} \text{Accounts Receivable Subsidiary Ledger} & \text{ }\\ \text{DIA Diaz, Arturo} & \text{NAK Nakata, Yoko}\\ \text{FAS FastForward Productions} & \text{SUL Sullivan, Heather}\\ \end{array} $$ Record the transactions on page 5 of the general journal in your working papers. $$ \begin{array}{ll} \text{Date} & \text{Transactions}\\ \text{Jan. 1} & \text{Sold merchandise on account to Yoko Nakata for \$250 plus a}\\ \text{ } & \text{4\\% sales tax of \$10, Sales Slip 90.}\\ \text{3} & \text{Received \$50 in cash from the sale of supplies to Betty’s}\\ \text{ } & \text{Boutique, Receipt 201.}\\ \text{7} & \text{Sold \$300 in merchandise plus a sales tax of \$12 to Arturo}\\ \text{ } & \text{Diaz on account, Sales Slip 91.}\\ \text{12} & \text{Sold on account \$1,500 in merchandise plus a sales tax of}\\ \text{ } & \text{\$60 to FastForward Productions, credit terms 2/10, n/30,}\\ \text{ } & \text{Sales Slip 92.}\\ \text{13} & \text{Issued Credit Memorandum 20 for \$312 to Arturo Diaz,}\\ \text{ } & \text{which includes \$300 in merchandise returned by him plus }\\ \text{ } & \text{sales tax of \$12. }\\ \text{14} & \text{Received a check for \$260 from Yoko Nakata in full payment}\\ \text{ } & \text{of his account, Receipt 202.}\\ \text{15} & \text{Cash sales amounted to \$2,500 plus \$100 in sales tax, Tape 75.}\\ \text{15} & \text{Bankcard sales were \$3,000 plus \$120 in sales tax, Tape 75.}\\ \text{21} & \text{Received a check for \$1,530 from FastForward Productions}\\ \text{ } & \text{in payment of their \$1,560 account balance less a cash discount}\\ \text{ } & \text{of \$30, Receipt 203.}\\ \text{28} & \text{Granted Heather Sullivan a \$104 allowance for damaged}\\ \text{ } & \text{merchandise of \$100 plus a 4\\% sales tax of \$4, Credit }\\ \text{ } & \text{Memorandum 21. }\\ \end{array} $$ Compute the net amount of sales tax for the month based on these transactions.

Sunset Surfwear uses the direct write-off method of accounting for uncollectible accounts. 1. In your working papers, record the following transactions on page 14 in the general journal. 2. Post the transactions to the appropriate accounts.

$$\begin{array}{ll} \text{Date} & \text{Transactions}\\ \text{June 1} & \text{Wrote off the \$288.75 account of Alex Hamilton as}\\ \text{ } & \text{uncollectible, Memorandum 223.}\\ \text{4} & \text{Wrote off the \$243.60 account of Helen Jun as uncollectible,}\\ \text{ } & \text{Memorandum 249.}\\ \text{14} & \text{Wrote off the \$57.75 account of Nate Moulder as uncollectible,}\\ \text{ } & \text{Memorandum 255.}\\ \text{22} & \text{Received \$288.75 from Alex Hamilton in full payment of his}\\ \text{ } & \text{account, Memorandum 298 and Receipt 944.}\\ \text{29} & \text{Wrote off the \$100.80 account of Martha Adams as}\\ \text{ } & \text{uncollectible, Memorandum 329.}\\ \end{array}$$

Describe the impact on Accounts Receivable and Uncollectible Accounts Expense when an account is written off.

A company knows that a rival is about to bring out a competing product. It believes that this rival has three possible packaging plans (superior, normal, and cheap) in mind and that all are equally likely. Also, there are three equally likely possible marketing strategies (intense media advertising, price discounts, and the use of a coupon to reduce the price of future purchases). What is the probability that the rival will employ superior packaging in conjunction with an intense media advertising campaign? Assume that packaging plans and marketing strategies are determined independently.

The Marketing Manager at Foodco, a large grocery store, wants to determine if store display location influences sales of a particular grocery item. He instructs employees to rotate the display location of that item every week and then tallies the weekly sales at each location over a 24-week period (8 weeks per location). The following sales results were obtained.

$$\begin{array}{|c|c|c|} \hline \begin{array}{c} \text { Front of store } \\ \text { (units sold) } \end{array} & \begin{array}{c} \text { Center of store } \\ \text { (units sold) } \end{array} & \begin{array}{c} \text { Side aisle } \\ \text { (units sold) } \end{array} \\ \hline 947 & 858 & 1096 \\ \hline 1106 & 780 & 1047 \\ \hline 1143 & 786 & 910 \\ \hline 1162 & 816 & 823 \\ \hline 967 & 800 & 919 \\ \hline 956 & 770 & 924 \\ \hline 1057 & 876 & 1091 \\ \hline 996 & 802 & 1027 \\ \hline \bar{x}_1=1041.8 & \bar{x}_2=811.0 & \bar{x}_3=979.6 \\ \hline s_1^2=7583.4 & s_2^2=1418.3 & s_3^2=9840.0 \\ \hline & \overline{\bar{x}}=944.1 & \\ \hline \end{array}$$

a. Construct an ANOVA table. Assume sales are normally distributed.

Annual compact disc sales can be modeled by the quartic function

$$f ( x ) = 0.48 x ^ { 4 } - 9.6 x ^ { 3 } + 53 x ^ { 2 } - 49 x + 599$$

where x is the number of years after 1995 and f(x) is annual sales in millions. Continue the graph for x = 11 and x = 12. What trends in compact disc sales does the graph suggest?

Chip Sales The worldwide sales of flash memory chip (in billions of dollars) is approximated by

$$S(t)=4.3(t+2)^{0.94} \quad(0 \leq t \leq 8)$$

where $t$ is measured in years, with $t=0$ corresponding to 2002. Flash chips are used in cell phones, digital cameras, and other products. a. What were the worldwide flash memory chip sales in 2002 ? b. What were the estimated sales for 2010 ?

The proportion of adult women in the United States is about $51 \%$. A marketing survey telephones 400 people at random.

d) Would you be surprised to find $48 \%$ women in a sample of size 400? Describe.

The Lady Bug, a women 's clothing chain store, found that $t$ days after the end of a sales promotion the volume of sales was given by

$$S(t)=20,000(1+e^{-0.5t}),\,\,\, (0\leq t\leq 5)$$

dollars. a. Find the rate of change of The Lady Bug's sales volume when $t=1,\,t=2\,,t=3$ and $t=4$. b. In how many days will the sales volume drop below $27,400?

The following partial MINITAB regression output for the starting salary data relates to predicting the starting salary of a marketing graduate having a grade point average of 3.25.

Predicted Values for New Observations
New Obs            Fit                SE Fit                    95% CI                   95% PI
    1             33.362              0.213                  (32.813, 33.911)         (31.878, 34.846)

Report (as shown on the computer output) a point prediction of and a 95 percent prediction interval for the starting salary of an individual marketing graduate having a grade point average of 3.25.

Total sales of the Worland Marke ts were $8,200,000 two years ago and$9,020,000 last year.

A child 's toy was recalled as being unsafe . Before the recall, sales of the toy were 16,760 units . The toy has been redesigned, and the company expects unit sales to be only 40% of what they

Work the problem.

The total amount of sales from manufacturing (in trillions of dollars) within the United States M can be approximated by

$$M=\frac{.122 x^2+5.48 x+6.5}{x+2},$$

where x = 1 corresponds to the year 2001.

(a) What were the sales in 2009?

(b) In what year did sales exceed 6.0 trillion

The data file Quarterly Sales shows quarterly sales of a corporation over a period of 6 years. Use the Holt-Winters seasonal method to obtain forecasts of sales up to eight quarters ahead. Employ smoothing constants $\alpha=0.5, \beta=0.6$, and $\gamma=0.7$. Graph the data and the forecasts.

How does an MBA major affect the number of job offers received? An MBA student randomly sampled four recent graduates, one each in finance, marketing, and management, and asked them to report the number of job offers. Can we conclude at the 5% significance level that there are differences in the number of job offers between the three MBA majors?

Finance	Marketing	Management
3	1	8
1	5	5
4	3	4
1	4	6