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Willie Cheetum is the CEO of Happy Foods, a distributor of produce to grocery store chains throughout the Midwest. At the end of the year, the company's accounting manager provides Willie with the following information, before any adjustment. Accounts receivable Estimated percentage uncollectible Allowance for uncollectible accounts Operating income $ 920,000 10% $ 22,000 (credit) $ 242,000 Willie's compensation contract states that if the company generates operating income of at least $192,000, he will get a salary bonus early next year. Required: 1. Record the adjusting entry for uncollectible accounts using the accountant's estimate of 10% of accounts receivable. 2-a. After the adjusting entry is recorded in requirement 1, what is the revised amount of operating income? 2-b. Will Willie get his salary bonus? 3. Willie instructs the accountant to record the adjusting entry for uncollectible accounts using 7% rather than 10% of accounts receivable. Now will Willie get his salary bonus? 4. By how much would total assets and operating income be misstated using the 7% amount? Complete this question by entering your answers in the tabs below.

Wille Cheetum is the CEO of Happy Foods, a distributor of produce to grocery store chains throughout the Midwest. At the end of the year, the company's accounting manager provides Willie with the following information, before any adjustment. Willie's compensation contract states that if the company generates operating income of at least $192,000, he will get a salary bonus early next year. Required: 1. Record the adjusting entry for uncollectible accounts using the accountant's estimate of 10% of accounts recelvable. 2-a. After the adjusting entry is recorded in requirement 1 , what is the revised amount of operating income? 2-b. Will Willie got his salary bonus? 3. Wille instructs the accountant to record the adjusting entry for uncollectible accounts using 7% rather than 10% of accounts recelvable. Now will Willie get his salary bonus? 4. By how much would total assets and operating income be misstated using the 7% amount? Complete this question by entering your answers in the tabs below

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