Required information The following information applies to the questions displayed below.] Wanda B. Rich is the CEO of Outlet Flooring, a discount provider of carpet, tile, wood, and laminate flooring. At the end of the year, the company's accountant provides Wanda with the following information, before any adjustment. Accounts receivable Estimated percentage uncollectible Allowance for uncollectible accounts Operating income $9,600,000 2% $ 96,000 (credit) $2,200,000 Wanda has significant stock ownership in the company and, therefore, would like to keep the stock price high. Analysts on Wall Street expect the company to have operating income of $1,640,000. The fact that actual operating income is well above this amount will make investors happy and help maintain a high stock price. Meeting analysts' expectations will also help Wanda keep her job. Required: 1. Record the adjustment for uncollectible accounts using the accountant's estimate of 2% of accounts receivable. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) Required: 1. Record the adjustment for uncollectible accounts using the accountant's estimate of 2% of accounts receivable. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet Record the adjusting entry for Uncollectible Accounts. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal Required information [The following information applies to the questions displayed below.) Wanda B. Rich is the CEO of Outlet Flooring, a discount provider of carpet, tile, wood, and laminate flooring. At the end of the year, the company's accountant provides Wanda with the following information, before any adjustment. $9,600,000 2% Accounts receivable Estimated percentage uncollectible Allowance for uncollectible accounts Operating income $ 96,000 (credit) $2,200,000 Wanda has significant stock ownership in the company and, therefore, would like to keep the stock price high. Analysts on Wall Street expect the company to have operating income of $1,640,000. The fact that actual operating income is well above this amount will make investors happy and help maintain a high stock price. Meeting analysts' expectations will also help Wanda keep her job. 2-a. After the adjustment is recorded in Part 1, what is the revised amount of operating income? Revised operating income 2-b. Will Outlet Flooring still meet analysts' expectations? Yes Required information [The following information applies to the questions displayed below.) Wanda B. Rich is the CEO of Outlet Flooring, a discount provider of carpet, tile, wood, and laminate flooring. At the end of the year, the company's accountant provides Wanda with the following information, before any adjustment. Accounts receivable Estimated percentage uncollectible Allowance for uncollectible accounts Operating income $9,600,000 2% $ 96,000 (credit) $2,200,000 Wanda has significant stock ownership in the company and, therefore, would like to keep the stock price high. Analysts on Wall Street expect the company to have operating income of $1,640,000. The fact that actual operating income is well above this amount will make investors happy and help maintain a high stock price. Meeting analysts' expectations will also help Wanda keep her job. 3. Wanda instructs the accountant to instead record $560,000 as bad debt expense so that operating income will exactly meet analysts' expectations. By how much would total assets and operating income be misstated if the accountant records this amount? Total assets Operating income Required information [The following information applies to the questions displayed below.) Wanda B. Rich is the CEO of Outlet Flooring, a discount provider of carpet, tile, wood, and laminate flooring. At the end of the year, the company's accountant provides Wanda with the following information, before any adjustment. Accounts receivable Estimated percentage uncollectible Allowance for uncollectible accounts Operating income $9,600,000 2% $ 96,000 (credit) $2,200,000 Wanda has significant stock ownership in the company and, therefore, would like to keep the stock price high. Analysts on Wall Street expect the company to have operating income of $1,640,000. The fact that actual operating income is well above this amount will make investors happy and help maintain a high stock price. Meeting analysts' expectations will also help Wanda keep her job. 4. Why would Wanda be motivated to manage operating income in this way? To save income for future. To reduce income for future. Required information The following information applies to the questions displayed below.] Wanda B. Rich is the CEO of Outlet Flooring, a discount provider of carpet, tile, wood, and laminate flooring. At the end of the year, the company's accountant provides Wanda with the following information, before any adjustment. Accounts receivable Estimated percentage uncollectible Allowance for uncollectible accounts Operating income $9,600,000 2% $ 96,000 (credit) $2,200,000 Wanda has significant stock ownership in the company and, therefore, would like to keep the stock price high. Analysts on Wall Street expect the company to have operating income of $1,640,000. The fact that actual operating income is well above this amount will make investors happy and help maintain a high stock price. Meeting analysts' expectations will also help Wanda keep her job. Required: 1. Record the adjustment for uncollectible accounts using the accountant's estimate of 2% of accounts receivable. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) Required: 1. Record the adjustment for uncollectible accounts using the accountant's estimate of 2% of accounts receivable. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet Record the adjusting entry for Uncollectible Accounts. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal Required information [The following information applies to the questions displayed below.) Wanda B. Rich is the CEO of Outlet Flooring, a discount provider of carpet, tile, wood, and laminate flooring. At the end of the year, the company's accountant provides Wanda with the following information, before any adjustment. $9,600,000 2% Accounts receivable Estimated percentage uncollectible Allowance for uncollectible accounts Operating income $ 96,000 (credit) $2,200,000 Wanda has significant stock ownership in the company and, therefore, would like to keep the stock price high. Analysts on Wall Street expect the company to have operating income of $1,640,000. The fact that actual operating income is well above this amount will make investors happy and help maintain a high stock price. Meeting analysts' expectations will also help Wanda keep her job. 2-a. After the adjustment is recorded in Part 1, what is the revised amount of operating income? Revised operating income 2-b. Will Outlet Flooring still meet analysts' expectations? Yes Required information [The following information applies to the questions displayed below.) Wanda B. Rich is the CEO of Outlet Flooring, a discount provider of carpet, tile, wood, and laminate flooring. At the end of the year, the company's accountant provides Wanda with the following information, before any adjustment. Accounts receivable Estimated percentage uncollectible Allowance for uncollectible accounts Operating income $9,600,000 2% $ 96,000 (credit) $2,200,000 Wanda has significant stock ownership in the company and, therefore, would like to keep the stock price high. Analysts on Wall Street expect the company to have operating income of $1,640,000. The fact that actual operating income is well above this amount will make investors happy and help maintain a high stock price. Meeting analysts' expectations will also help Wanda keep her job. 3. Wanda instructs the accountant to instead record $560,000 as bad debt expense so that operating income will exactly meet analysts' expectations. By how much would total assets and operating income be misstated if the accountant records this amount? Total assets Operating income Required information [The following information applies to the questions displayed below.) Wanda B. Rich is the CEO of Outlet Flooring, a discount provider of carpet, tile, wood, and laminate flooring. At the end of the year, the company's accountant provides Wanda with the following information, before any adjustment. Accounts receivable Estimated percentage uncollectible Allowance for uncollectible accounts Operating income $9,600,000 2% $ 96,000 (credit) $2,200,000 Wanda has significant stock ownership in the company and, therefore, would like to keep the stock price high. Analysts on Wall Street expect the company to have operating income of $1,640,000. The fact that actual operating income is well above this amount will make investors happy and help maintain a high stock price. Meeting analysts' expectations will also help Wanda keep her job. 4. Why would Wanda be motivated to manage operating income in this way? To save income for future. To reduce income for future