Finance-AW290 Online Services


Grainger, Inc.


Grainger, Inc. wants your advice regarding how the following items should be reported in the financial statements.

1. Aging of Accounts receivable (gross)

Current: $ 620,000
Over 30 Days: 125,000
Over 60 Days: 80,000
Over 120 Days: 50,000

Grainger wants to know what amount they should record for receivables on the financial statements. The terms of the receivables are 1/15th, net 30. The collections department has determined that historically, 90% of the net current receivables are collected, 80% of the 30-60 day receivables are collected, 60% of the 60 120 day receivables are collected and 15% of the over 120 day receivables are collected. In addition, a $10,000 receivable in the over 120 day’s category has been determined to be uncollectible at year’s end.

2. Grainger had net sales of $2,000,000 for the fiscal year. Each product is sold with a one-year warranty. The warranty is included in the original sales price. The average cost of the warranty is five cents per sales dollar. During the year, Grainger spent $70,000 on warranty repairs.

3. Grainger is currently involved in three product liability suits. The opinion of the client’s legal counsel on each case is as follows. The first suit is for $5,000,000, but it is reasonably possible that within the next year or so the suit will be settled out of court for between $250,000 and $1,000,000. The second suit for $500,000 is a nuisance claim and the chances of losing or having to settle this case are remote. The third suit is for $1,000,000 and it is probable that Grainger will lose this action. Grainger maintains product liability insurance that covers a maximum of $4,000,000 per event excluding the first $1,000,000.

4. The Justice Department has commenced an action against Grainger alleging that Grainger is forcing its retail dealerships to sell Grainger products at specific prices or face the risk of losing their exclusive dealership in that geographic area. Discovery has started. Grainger denies the allegations and is vigorously defending itself. Management anticipates no material adverse effect will arise from the action.

5. During this fiscal year, judgment was entered against Grainger for a breach of contract action which had been brought the prior year. As of last fiscal year-end, Grainger had considered the amount of damages claimed by the plaintiff ($200,000) to be probable and reasonable. However, the court disallowed the method used to calculate the damages, and the final judgment paid by Grainger in this fiscal year was $60,000.

You can read more about our case study assignment help services here.

How it Works

How It works ?

Step 1:- Click on Submit your Assignment here or shown in left side corner of every page and fill the quotation form with all the details. In the comment section, please mention Case Id mentioned in end of every Q&A Page. You can also send us your details through our email id with Case Id in the email body. Case Id is essential to locate your questions so please mentioned that in your email or submit your quotes form comment section.

Step 2:- While filling submit your quotes form please fill all details like deadline date, expected budget, topic , your comments in addition to Case Id . The date is asked to provide deadline.

Step 3:- Once we received your assignments through submit your quotes form or email, we will review the Questions and notify our price through our email id. Kindly ensure that our email id and must not go into your spam folders. We request you to provide your expected budget as it will help us in negotiating with our experts.

Step 4:- Once you agreed with our price, kindly pay by clicking on Pay Now and please ensure that while entering your credit card details for making payment, it must be done correctly and address should be your credit card billing address. You can also request for invoice to our live chat representatives.

Step 5:- Once we received the payment we will notify through our email and will deliver the Q&A solution through mail as per agreed upon deadline.

Step 6:-You can also call us in our phone no. as given in the top of the home page or chat with our customer service representatives by clicking on chat now given in the bottom right corner.

Case Approach

Scientific Methodology

We use best scientific approach to solve case study as recommended and designed by best professors and experts in the World. The approach followed by our experts are given below:

Defining Problem

The first step in solving any case study analysis is to define its problem carefully. In order to do this step, our experts read the case two three times so as to define problem carefully and accurately. This step acts as a base and help in building the structure in next steps.

Structure Definition

The second step is to define structure to solve the case. Different cases has different requirements and so as the structure. Our experts understand this and follow student;s university guidelines to come out with best structure so that student will receive best mark for the same.

Research and Analysis

This is the most important step which actually defines the strength of any case analysis. In order to provide best case analysis, our experts not only refer case materials but also outside materials if required to come out with best analysis for the case.

Conclusion & Recommendations

A weak conclusion or recommendations spoil the entire case analysis. Our expert know this and always provide good chunks of volume for this part so that instructors will see the effort put by students in arriving at solution so as to provide best mark.

Related Services


6. Grainger is suing Cortland for patent infringement in the amount of $2,000,000. While most patent infringement cases are hard to win, Grainger’s attorney believes that it is probable that Grainger will prevail because 1) the product’s interior workings include an exact copy of Grainger’s patented process and 2) Cortland employs several former Grainger employees who were privy to the secrets of the patented process.


7. On an icy, February morning, an office supply salesman tripped and fell on the stairs to Grainger’s office while making an unsolicited call on Grainger’s purchasing agent. The salesman injured his hip and lower back. Grainger’s insurance coverage paid for the salesman’s two trips to the hospital. At fiscal year-end, Grainger’s insurance company notified Grainger that although the salesman had not returned to work and complained of recurring pains, the insurance company was satisfied that the claim had been paid in full.

8. Grainger’s largest customer wanted to expand its operations earlier in this fiscal year. In the interest of increased sales to this customer, Grainger agreed to co-sign on the $1,000,000, 5% promissory note which funded the expansion. The note becomes due in three years. Grainger’s customer made all the appropriate interest payments that
were due this year.

9. The last union contract with Grainger’s plant workers expired six months ago. Negotiations have stalled and management expects the union to take a strike vote within the next couple of weeks. Management estimates that a strike would cost $7,000 per day and could be expected to last at least eight weeks at which time all inventories would be exhausted.

10. Grainger was deemed by the Environmental Protection Agency (EPA) to be a responsible party in the clean-up of a toxic waste site. At the time that Grainger was engaged in dumping, all dumping was done within government approved guidelines. Several years ago Grainger discontinued the portion of their operations responsible for generating such waste. The EPA has set the liability for Grainger’s share of the clean-up at $8,000,000. This amount is subject to change in the future as mandated by the EPA. Grainger has not been able to purchase insurance coverage to cover environmental remediation costs.



1. Identify and explain the accounting standard(s) that apply to each situation above.
2. Illustrate the correct accounting treatment for each situation according to U.S. GAAP, and prepare appropriate journal entries, partial financial statement(s), and/or footnote disclosures, as appropriate, for each situation.
product code: Finance-AW290
Looking for best Finance-AW290 online ,please click here