X-Tel budgets sales of $\$ 60,000$ for April, $\$ 100,000$ for May, and $\$ 80,000$ for June. In addition, sales are $40 \%$ cash and $60 \%$ on credit. All credit sales are collected in the month following the sale. The April 1 balance in accounts receivable is $\$ 15,000$. Prepare a schedule of budgeted cash receipts for April, May, and June.

A pharmaceutical salesperson receives a monthly salary of $5500 plus a commission of 7% of the total monthly sales. Write a linear model that relates the total monthly wages W to the sales S.

Vail Company recorded the following selected transactions during November 2015.

Nov. 5	Accounts Receivable—Ski Shop	4,615
	$~~~~$ Sales		4,615
10	Accounts Receivable—Welcome Enterprises	1,350
	$~~~~$ Sales		1,350
13	Accounts Receivable—Zia Natara	832
	$~~~~$ Sales		832
21	Sales Returns and Allowances	209
	$~~~~$ Accounts Receivable—Zia Natara		209
30	Accounts Receivable—Ski Shop	2,713
	$~~~~$ Sales		2,713

1. Open a general ledger having T-accounts for Accounts Receivable, Sales, and Sales Returns and Allowances. Also open an accounts receivable subsidiary ledger having a T-account for each customer. Post these entries to both the general ledger and the accounts receivable ledger.

2. Prepare a schedule of accounts receivable (see Exhibit 9.4) and compare its total with the balance of the Accounts Receivable controlling account as of November 30.

$S$ represents weekly sales of a product. What can be said of $S^{\prime}$ and $S^{\prime \prime}$ for each of the following statements? (c ) The rate of change of sales is constant.

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

Vail Company recorded the following transactions during November.

Nov. 5      Accounts Receivable-Ski Shop                4,615
                Sales                                           4,615
                
    10      Accounts Receivable-Wekome Enterprises      1,350
                Sales                                           1,350
                
    13      Accounts Receivable-Zia Nalara                832
                Sales                                             832
                
    21      Sales Returns and Allowances                  209
                Accounts Receivable-Zia Natara                    209
                
    30      Accounts Receivable-Ski Shop                2,713
                Sales                                           2,713

1. Open a general ledger having T-accounts for Accounts Receivable, Sales, and Sales Returns and Allowances. Also open an accounts receivable subsidiary ledger having a T-account for each or its three customers. Post these entries to both the general ledger and the accounts receivable ledger.

2. Prepare a schedule or accounts receivable and compare its total with the balance of the Accounts Receivable controlling account as of November 30.

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.

Use the following information about unit sales and total cost of sales to prepare a scatter diagram. Draw a cost line that reflects the behavior displayed by this cost. Determine whether the cost is variable, stepwise, fixed, mixed, or curvilinear.

Period	Unit Sales	Cost of Sales		Period	Unit Sales	Cost of Sales
1	760	$590		9	$580	$390
2	800	560		10	320	240
3	200	230		11	240	230
4	400	400		12	720	550
5	480	390		13	280	260
6	620	550		14	440	410
7	680	590		15	380	260
8	540	430

Yvonne opened a new video game store. The table shows a record of her sales for the first five weeks. To break even, she needs to sell at least $\$12500$ worth of merchandise each week. She assumes the sales trend will continue and wants to know what to expect over the next weeks.
Weekly Store Sales:

$$\begin{array}{| l | l |}\hline \text{Week } & \text{Sales $\$$}\\ \hline \text{1} & \text{8470}\\\hline \text{2} & \text{8920}\\\hline \text{3} & \text{9360}\\\hline \text{4} & \text{9790}\\\hline \text{5} & \text{10,210}\\\hline \end{array}$$

When will sales be twice the sales of week 1?

A firm’s asset turnover ratio is typically computed as:

a. Operating Income $\div$ Net Sales.

b. Gross Profit $\div$ Net Sales.

c. Net Sales $\div$ Average Total Assets.

d. Net Income + [Interest Expense $\times$ (1 - Tax Rate)] $\div$ Average Total Assets.

Why is a sales tax considered a regressive tax?

Determine whether the reasoning in this exercise is an example of deductive or inductive reasoning.

Michelle is a sales representative for a publishing company. For the past $16$ years, she has exceeded her annual sales goal, primarily by selling mathematics textbooks. Therefore, she will also exceed her annual sales goal this year.

Dextra Computing sells merchandise for $6,000 cash on September 30 (cost of merchandise is$3,900). Dextra collects 5% sales tax. (1) Record the entry for the $6,000 sale and its sales tax. (2) Record the entry that shows Dextra sending the sales tax on this sale to the government on October 15.

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. $$ \begin{array} \text{Date} & \text{Transactions}\\ \text{Jan. 1} & \text{Sold \$300 in merchandise plus a sales tax of \$18 on account to }\\ \text{ } & \text{Martha Adams, Sales Slip 777.}\\ \text{5} & \text{Sold \$1,500 in merchandise on account to Westwood High}\\ \text{ } & \text{School Athletics, Sales Slip 778.}\\ \text{7} & \text{Received \$400 from Alex Hamilton on account, Receipt 345.}\\ \text{10} & \text{Issued Credit Memorandum 102 to Martha Adams for \$318}\\ \text{ } & \text{covering \$300 in returned merchandise plus \$18 sales tax.}\\ \text{15} & \text{Recorded cash sales of \$800 plus \$48 in sales tax, Tape 39.}\\ \text{15} & \text{Recorded bankcard sales of \$900 plus \$54 in sales tax,}\\ \text{ } & \text{Tape 39.}\\ \text{20} & \text{Received \$1,500 from Westwood High School Athletics in }\\ \text{ } & \text{payment of Sales Slip 778, Receipt 346.}\\ \text{25} & \text{Sold \$1,200 in merchandise plus sales tax of \$72 on account to}\\ \text{ } & \text{Helen Jun, Sales Slip 779.}\\ \text{28} & \text{Granted a \$106 sales allowance to Helen Jun, which includes}\\ \text{ } & \text{\$100 for damaged merchandise she kept and sales tax of \$6,}\\ \text{ } & \text{Credit Memorandum 103.}\\ \text{30} & \text{Received \$500 from a charge customer, Nate Moulder, in }\\ \text{ } & \text{payment of his \$500 account, Receipt 347.}\\ \end{array} $$