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Performance Bike Co. is a wholesaler of motorcycle supplies. An aging of the company's accounts receivable on December 31 and a historical analysis of the percentage of uncollectible accounts in each age category are as follows:

 Age Interval  Balance  Percent  Uncollectlble  Not past due $3,250,0000.8%130 days past due 1,050,0002.43160 days past due 780,0007.06190 days past due 320,00018.091180 days past due 240,00034.0 Over 180 days past due 150,00085.0$5,790,000\begin{array}{lrc} \text { Age Interval } & \text { Balance } & \begin{array}{c} \text { Percent } \\ \text { Uncollectlble } \end{array} \\ \hline \text { Not past due } & \$ 3,250,000 & 0.8 \% \\ 1-30 \text { days past due } & 1,050,000 & 2.4 \\ 31-60 \text { days past due } & 780,000 & 7.0 \\ 61-90 \text { days past due } & 320,000 & 18.0 \\ 91-180 \text { days past due } & 240,000 & 34.0 \\ \text { Over } 180 \text { days past due } & \underline{\hspace{15pt}150,000} & 85.0\\ &\underline{\underline{\$5,790,000}} \end{array}

Assume that the allowance for doubtful accounts for Performance Bike Co. had a debit balance of $28,400 as of December 31.

Journalize the adjusting entry for uncollectible accounts as of December 31.

The adjusted trial balance of Estella Real Estate Appraisal at June 30, 2016, follows:

ESTELLA REAL ESTATE APPRAISALAdjusted Trial BalanceJune 30, 2016\begin{array}{c} \textbf{ESTELLA REAL ESTATE APPRAISAL}\\ \text{Adjusted Trial Balance}\\ \text{June 30, 2016}\\ \end{array}

BalanceAccount TitleDebitCreditCash$4,600Accounts Receivable5,300Office Supplies1,500Prepaid Insurance1,600Building77,000Accumulated Depreciation - Building$26,000Land13,500Accounts Payable19,300Interest Payable8,400Salaries Payable1,900Unearned Revenue5,300Notes Payable (long-term)37,000Common Stock3,000Retained Earnings37,000Dividends27,200Service Revenue48,900Insurance Expense4,300Salaries Expense33,000Supplies Expense200Interest Expense8,400Utilities Expense2,500Depreciation Expense - Building7,700Total$186,800$186,800\begin{array}{lrr} &\textbf{Balance}\\ \textbf{Account Title}&\textbf{Debit}&\textbf{Credit}\\ \text{Cash}&\$4,600\\ \text{Accounts Receivable}&5,300\\ \text{Office Supplies}&1,500\\ \text{Prepaid Insurance}&1,600\\ \text{Building}&77,000\\ \text{Accumulated Depreciation - Building}&&\$26,000\\ \text{Land}&13,500\\ \text{Accounts Payable}&&19,300\\ \text{Interest Payable}&&8,400\\ \text{Salaries Payable}&&1,900\\ \text{Unearned Revenue}&&5,300\\ \text{Notes Payable (long-term)}&&37,000\\ \text{Common Stock}&&3,000\\ \text{Retained Earnings}&&37,000\\ \text{Dividends}&27,200\\ \text{Service Revenue}&&48,900\\ \text{Insurance Expense}&4,300\\ \text{Salaries Expense}&33,000\\ \text{Supplies Expense}&200\\ \text{Interest Expense}&8,400\\ \text{Utilities Expense}&2,500\\ \text{Depreciation Expense - Building}&7,700\\ \text{Total}&\underline{\underline{\$186,800}}&\underline{\underline{\$186,800}}\\ \end{array}

Requirements

  1. Prepare the company's income statement for the year ended June 30, 2016.
  2. Prepare the company's statement of retained earnings for the year ended June 30, 2016.
  3. Prepare the company's classified balance sheet in report form at June 30, 2016.
  4. Journalize the closing entries.
  5. Open the T-accounts using the balances from the adjusted trial balance, and post the closing entries to the T-accounts.
  6. Prepare the company's post-closing trial balance at June 30, 2016.
Question

Suppose that you have n values to put into an empty binary search tree.

  1. In how many different orders can you add the n values to the tree? This is not the same as the number of possible binary search trees for n values. Explain why.
  2. What is the probability that a randomly constructed binary search tree has worst-case performance? Hint: Compute the fraction of the total number of possible orders that results in the worst case.

Solution

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a. The number of different orders nn values can be added to a tree is the number of permutations of nn values, n!n!. The number of possible binary search trees for nn values is given by this formula:

(2n)!(n+1)!n!\frac{(2n)!}{(n + 1)! \cdot n!}

These numbers are called Catalan numbers.

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