Kế toán, kiểm toán - Reporting and analyzing receivables

Reporting and Analyzing ReceivablesKimmel ● Weygandt ● KiesoFinancial Accounting, Eighth Edition8Describe how companies value accounts receivable and record their disposition.CHAPTER OUTLINEExplain how companies recognize accounts receivable.12LEARNING OBJECTIVESExplain how companies recognize, value, and dispose of notes receivable.3Describe the statement presentation of receivables and the principles of receivables management.4Amounts due from individuals and companies that are expected to be collected in cash.Amounts customers owe on account that result from the sale of goods and services.Accounts ReceivableWritten promise (formal instrument) for amount to be received. Also called trade receivables.Nontrade receivables such as interest, loans to officers, advances to employees, and income taxes refundable.Notes ReceivableOther ReceivablesLEARNING OBJECTIVEExplain how companies recognize accounts receivable.1LO 1 Amounts due from individuals and companies that are expected to be collected in cash.ILLUSTRATION 8-1Receivables as a percentage of assetsTYPES OF RECEIVABLESLO 1 Service organization records a receivable when it performs service on account. Merchandiser records accounts receivable at the point of sale of merchandise on account.Seller may offer a discount to encourage early payment.Buyer might return goods found to be unacceptable.Sales returns reduce receivables. RECOGNIZING ACCOUNTS RECEIVABLELO 1 Illustration: Assume that Jordache Co. on July 1, 2017, sells merchandise on account to Polo Company for $1,000 terms 2/10, n/30. Prepare the journal entry to record this transaction on the books of Jordache Co.Accounts Receivable 1,000Jul. 1Sales Revenue 1,000RECOGNIZING ACCOUNTS RECEIVABLELO 1 Illustration: On July 5, Polo returns merchandise worth $100 to Jordache Co. Sales Returns and Allowances 100Jul. 5Accounts Receivable 100Illustration: On July 11, Jordache receives payment fromPolo Company for the balance due.Cash ($900 - $18) 882Jul. 11Sales Discounts ($900 x .02) 18Accounts Receivable 900RECOGNIZING ACCOUNTS RECEIVABLELO 1 Interest Revenue 4.50Illustration: Some retailers issue their own credit cards. Assume that you use your JCPenney Company credit card to purchase clothing with a sales price of $300.Accounts Receivable 300Sales Revenue 300Assuming that you owe $300 at the end of the month, and JCPenney charges 1.5% per month on the balance dueAccounts Receivable 4.50RECOGNIZING ACCOUNTS RECEIVABLELO 1 Total take: $1.5 millionANATOMY OF A FRAUDTasanee was the accounts receivable clerk for a large non-profit foundation that provided performance and exhibition space for the performing and visual arts. Her responsibilities included activities normally assigned to an accounts receivable clerk, such as recording revenues from various sources that included donations, facility rental fees, ticket revenue, and bar receipts. However, she was also responsible for handling all cash and checks from the time they were received until the time she deposited them, as well as preparing the bank reconciliation. Tasanee took advantage of her situation by falsifying bank deposits and bank reconciliations so that she could steal cash from the bar receipts. Since nobody else logged the donations or matched the donation receipts to pledges prior to Tasanee receiving them, she was able to offset the cash that was stolen against donations that she received but didn’t record. Her crime was made easier by the fact that her boss, the company’s controller, only did a very superficial review of the bank reconciliation and thus didn’t notice that some numbers had been cut out from other documents and taped onto the bank reconciliation.The Missing ControlSegregation of duties. The foundation should not have allowed an accounts receivable clerk, whose job was to record receivables, to also handle cash, record cash, make deposits, and especially prepare the bank reconciliation. Independent internal verification. The controller was supposed to perform a thorough review of the bank reconciliation. Because he did not, he was terminated from his position.LO 1 Recognizing Accounts ReceivableDO IT!1LO 1 On May 1, Wilton sold merchandise on account to Bates for $50,000 terms 3/15, net 45. On May 4, Bates returns merchandise with a sales price of $2,000. On May 16, Wilton receives payment from Bates for the balance due. Prepare journal entries to record the May transactions on Wilton’s books. (Ignore cost of goods sold entries.)Accounts Receivable—Bates 50,000 Sales Revenue 50,000May 1Sales Returns and Allowances 2,000 Accounts Receivable—Bates 2,000Cash ($48,000 - $1,440) 46,560Sales Discounts ($48,000 x .03) 1,440 Accounts Receivable—Bates 48,000416VALUING ACCOUNTS RECEIVABLECurrent asset.Valuation (net realizable value).Uncollectible Accounts ReceivableSales on account raise the possibility of accounts not being collected. Seller records losses that result from extending credit as Bad Debt Expense.LEARNING OBJECTIVEDescribe how companies value accounts receivable and record their disposition.2LO 2Allowance MethodLosses are estimated:Better matching.Receivable stated at net realizable value.Required by GAAP.Methods of Accounting for Uncollectible AccountsDirect Write-OffTheoretically undesirable:No matching.Receivable not stated at net realizable value.Not acceptable for financial reporting.VALUING ACCOUNTS RECEIVABLELO 2How are these accounts presented on the Balance Sheet?Accounts ReceivableAllowance for Doubtful AccountsBeg. 500 25 Beg. End. 500 25 End. ACCOUNTS RECEIVABLELO 2ACCOUNTS RECEIVABLELO 2Alternate PresentationACCOUNTS RECEIVABLELO 2Accounts ReceivableAllowance for Doubtful AccountsBeg. 500 25 Beg. End. 500 25 End. Journal entry for credit sale of $100. Accounts Receivable 100 Sales 100ACCOUNTS RECEIVABLELO 2Accounts ReceivableAllowance for Doubtful AccountsBeg. 500 25 Beg. End. 600 25 End. Journal entry for credit sale of $100. Accounts Receivable 100 Sales 100Sale 100ACCOUNTS RECEIVABLELO 2Accounts ReceivableAllowance for Doubtful AccountsBeg. 500 25 Beg. End. 600 25 End. Sale 100Collected $333 on account. Cash 333 Accounts Receivable 333ACCOUNTS RECEIVABLELO 2Accounts ReceivableAllowance for Doubtful AccountsBeg. 500 25 Beg. End. 267 25 End. Sale 100Collected $333 on account. Cash 333 Accounts Receivable 333333 Coll. ACCOUNTS RECEIVABLELO 2Accounts ReceivableAllowance for Doubtful AccountsBeg. 500 25 Beg. End. 267 25 End. Sale 100333 Coll. Adjustment of $15 for estimated bad debts. Bad Debt Expense 15 Allowance for Doubtful Accounts 15ACCOUNTS RECEIVABLELO 2Accounts ReceivableAllowance for Doubtful AccountsBeg. 500 25 Beg. End. 267 40 End. Sale 100333 Coll. Adjustment of $15 for estimated bad debts. Bad Debt Expense 15 Allowance for Doubtful Accounts 15 15 Est. ACCOUNTS RECEIVABLELO 2Accounts ReceivableAllowance for Doubtful AccountsBeg. 500 25 Beg. End. 267 40 End. Sale 100333 Coll. 15 Est. Write-off of uncollectible accounts for $10. Allowance for Doubtful Accounts 10 Accounts Receivable 10ACCOUNTS RECEIVABLELO 2Accounts ReceivableAllowance for Doubtful AccountsBeg. 500 25 Beg. End. 257 30 End. Sale 100333 Coll. 15 Est. Write-off of uncollectible accounts for $10. Allowance for Doubtful Accounts 10 Accounts Receivable 10W/O 10 10 W/O ACCOUNTS RECEIVABLELO 2ACCOUNTS RECEIVABLELO 2Illustration: Assume that Warden Co. writes off M. E. Doran’s $200 balance as uncollectible on December 12. Warden’s entry is:Bad Debt Expense 200 Accounts Receivable—M. E. Doran 200Theoretically undesirable:No matching.Receivable not stated at cash realizable value.Not acceptable for financial reporting.Direct Write-Off Method for Uncollectible AccountsLO 2Companies estimate uncollectible accounts receivable. Debit Bad Debt Expense and credit Allowance for Doubtful Accounts (a contra-asset account).Companies debit Allowance for Doubtful Accounts and credit Accounts Receivable at the time the specific account is written off as uncollectible.Allowance Method for Uncollectible AccountsLO 2Illustration: Hampson Furniture has credit sales of $1,200,000 in 2017, of which $200,000 remains uncollected at December 31. The credit manager estimates that $12,000 of these sales will prove uncollectible.Bad Debt Expense 12,000 Allowance for Doubtful Accounts 12,000Dec. 31RECORDING ESTIMATED UNCOLLECTIBLESAllowance Method for UncollectiblesLO 2Illustration 8-3Presentation of allowancefor doubtful accountsAllowance Method for UncollectiblesLO 2Illustration: The vice-president of finance of Hampson Furniture on March 1, 2018, authorizes a write-off of the $500 balance owed by R. A. Ware. The entry to record the write-off is:Allowance for Doubtful Accounts 500 Accounts Receivable—R. A. Ware 500Mar. 1WRITE-OFF OF AN UNCOLLECTIBLE ACCOUNTAllowance Method for UncollectiblesILLUSTRATION 8-4General ledger balances after write-offLO 2Accounts Receivable—R. A. Ware 500 Allowance for Doubtful Accounts 5001July 1Illustration: On July 1, R. A. Ware pays the $500 amount that Hampson Furniture had written off on March 1. Hampson makes these entries:RECOVERY OF AN UNCOLLECTIBLE ACCOUNTCash 500 Accounts Receivable—R. A. Ware 500▼ HELPFUL HINT Like the write-off, a recovery does not involve the income statement.Allowance Method for UncollectiblesLO 2ILLUSTRATION 8-6 Nike’s allowance method disclosureESTIMATING THE ALLOWANCEAllowance Method for UncollectiblesLO 2Under the percentage-of-receivables basis, management establishes a percentage relationship between the amount of receivables and expected losses from uncollectible accounts.ESTIMATING THE ALLOWANCEAmount of bad debt expense that should be recorded in the adjusting entry is the difference between the required balance and the existing balance in the allowance account.LO 2Illustration 8-7Aging schedule Aging of Accounts ReceivableESTIMATING THE ALLOWANCE▼ HELPFUL HINT The percentage-of-receivables basis may use only a single percentage rate.LO 2Illustration: Assume the unadjusted trial balance shows Allowance for Doubtful Accounts with a credit balance of $528. Prepare the adjusting entry assuming $2,228 is the estimate of uncollectible receivables from the aging schedule.Bad Debt Expense 1,700Dec. 31 Allowance for Doubtful Accounts 1,700Illustration 8-8 Bad debts accounts after postingESTIMATING THE ALLOWANCELO 2Illustration 8-9 Sketchers USA’s note disclosure of accounts receivableACCOUNTS RECEIVABLELO 2ETHICS INSIGHTThere are many pressures on companies to achieve earnings targets. For managers, poor earnings can lead to dismissal or lack of promotion. It is not surprising then that management may be tempted to look for ways to boost their earnings number. One way a company can achieve greater earnings is to lower its estimate of what is needed in its Allowance for Doubtful Accounts (sometimes referred to as “tapping the cookie jar”). For example, suppose a company has an Allowance for Doubtful Accounts of $10 million and decides to reduce this balance to $9 million. As a result of this change, Bad Debt Expense decreases by $1 million and earnings increase by $1 million. Large banks such as JP Morgan Chase, Wells Fargo, and Bank of America recently decreased their Allowance for Doubtful Accounts by over $4 billion. These reductions came at a time when these big banks were still suffering from lower mortgage lending and trading activity, both of which lead to lower earnings. They justified these reductions in the allowance balances by noting that credit quality and economic conditions had improved. This may be so, but it sure is great to have a cookie jar that might be tapped when a boost in earnings is needed.Cookie Jar AllowancesLO 2Brule Co. has been in business five years. The unadjusted trial balance at the end of the current year shows: Accounts Receivable $30,000 Dr. Sales Revenue $180,000 Cr. Allowance for Doubtful Accounts $2,000 Dr.Bad debts are estimated to be 10% of receivables. Prepare the entry to adjust Allowance for Doubtful Accounts.SOLUTIONBad Debt Expense 5,000 * Allowance for Doubtful Accounts 5,000* [(10% x $30,000) + $2,000]Bad Debt ExpenseDO IT!2aLO 2Finance company or bank.Buys receivables from businesses and then collects the payments directly from the customers.Typically charges a commission to the company that is selling the receivables.Fee ranges from 1% to 3% of the receivables purchased.Sale of Receivables to a FactorDISPOSING OF ACCOUNTS RECEIVABLESLO 2Illustration: Assume that Hendredon Furniture factors$600,000 of receivables to Federal Factors. Federal Factors assesses a service charge of 2% of the amount of receivables sold. The journal entry to record the sale by Hendredon Furniture is as follows.Accounts Receivable 600,000Cash 588,000Service Charge Expense 12,000($600,000 x 2% = $12,000) Sale of Receivables to a FactorLO 2Retailer pays card issuer a fee of 2 to 4% of the invoice price for its services.Recorded the same as cash sales. Advantages to retailer:Issuer does credit investigation of customer.Issuer maintains customer accounts.Issuer undertakes collection and absorbs losses.Receives cash more quickly.National Credit Card SalesDISPOSING OF ACCOUNTS RECEIVABLESLO 2Illustration: Morgan Marie purchases $1,000 of compact discs for her restaurant from Sondgeroth Music Co., and she charges this amount on her Visa First Bank Card. The service fee that First Bank charges Sondgeroth Music is 3%. Sondgeroth Music’s entry to record this transaction on March 22, 2017, is as follows.Sales Revenue 1,000Cash 970Service Charge Expense 30National Credit Card SalesLO 2ACCOUNTING ACROSS THE ORGANIZATIONHow Does a Credit Card Work?Suppose that you use a Visa card to purchase some new ties at Nordstrom. The salesperson swipes your card, which allows the information on the magnetic strip on the back of the card to be read. The salesperson then enters in the amount of the purchase. The machine contacts the Visa computer, which routes the call back to the bank that issued your Visa card. The issuing bank verifies that the account exists, that the card is not stolen, and that you have not exceeded your credit limit. At this point, the slip is printed, which you sign. Visa acts as the clearing agent for the transaction. It transfers funds from the issuing bank to Nordstrom’s bank account. Generally this transfer of funds, from sale to the receipt of funds in the merchant’s account, takes two to three days. In the meantime, Visa puts a pending charge on your account for the amount of the tie purchase; that amount counts immediately against your available credit limit. At the end of the billing period, Visa sends you an invoice (your credit card bill) which shows the various charges you made, and the amounts that Visa expended on your behalf, for the month. You then must “pay the piper” for your stylish new ties.LO 2Peter M. Kell Wholesalers Co. needs to raise $120,000 in cash to safely cover next Friday’s employee payroll. Kell has reached its debt ceiling. Kell’s present balance of outstanding receivables totals $750,000. Kell decides to factor $125,000 of its receivables on September 7, 2017, to alleviate this cash crunch. Record the entry that Kell would make when it raises the needed cash. (Assume a 1% service charge.)SOLUTIONCash 123,750Service Charge Expense 1,250* (1% x $125,000)FactoringDO IT!2b Accounts Receivable 125,000*LO 2Companies may grant credit in exchange for a promissory note. A promissory note is a written promise to pay a specified amount of money on demand or at a definite time. Promissory notes may be used when individuals and companies lend or borrow money, when amount of transaction and credit period exceed normal limits, or in settlement of accounts receivable.LEARNING OBJECTIVEExplain how companies recognize, value, and dispose of notes receivable.3LO 3To the payee, the promissory note is a note receivable.To the maker, the promissory note is a note payable.ILLUSTRATION 8-12Promissory noteNOTES RECEIVABLELO 3Maturity date of a promissory note may be stated in one of three ways: On demand. On a stated date. At the end of a stated period of time.Note terms are expressed in: MonthsDays DETERMINING THE MATURITY DATELO 3COMPUTING INTERESTILLUSTRATION 8-13Formula for computing interestWhen counting days, omit the date the note is issued, but include the due date.ILLUSTRATION 8-14Computation of interestLO 3Illustration: Brent Company wrote a $1,000, two-month, 8% promissory note dated May 1, to settle an open account. Prepare entry would Wilma Company makes for the receipt of the note.Notes Receivable 1,000May 1 Accounts Receivable—Brent Company 1,000RECOGNIZING NOTES RECEIVABLELO 3Report short-term notes receivable at their cash (net) realizable value. Estimation of cash realizable value and recording bad debt expense and related allowance are similar to accounts receivable.VALUING NOTES RECEIVABLELO 3INTERNATIONAL INSIGHTCan Fair Value Be Unfair?The FASB and the International Accounting Standards Board (IASB) are considering proposals for how to account for financial instruments. The FASB has proposed that loans and receivables be accounted for at their fair value (the amount they could currently be sold for), as are most investments. The FASB believes that this would provide a more accurate view of a company’s financial position. It might be especially useful as an early warning when a bank is in trouble because of poor-quality loans. But, banks argue that fair values are difficult to estimate accurately. They are also concerned that volatile fair values could cause large swings in a bank’s reported net income.Source: David Reilly, “Banks Face a Mark-to-Market Challenge,” Wall Street Journal Online (March 15, 2010).LO 3Notes may be held to their maturity date.Maker may default and payee must make an adjustment to the account.Holder speeds up conversion to cash by selling the note receivable.DISPOSING OF NOTES RECEIVABLELO 3Honor of Notes ReceivableA note is honored when its maker pays it in full at its maturity date.Dishonor of Notes ReceivableA dishonored note is not paid in full at maturity. Dishonored note receivable is no longer negotiable.DISPOSING OF NOTES RECEIVABLELO 3Illustration: Wolder Co. lends Higley Inc. $10,000 on June 1, accepting a five-month, 9% interest note. If Wolder presents the note to Higley Inc. on November 1, the maturity date, Wolder’s entry to record the collection is:Cash 10,375Nov. 1 Notes Receivable 10,000 Interest Revenue 375($10,000 x 9% x 5/12 = $375)Honor of Notes ReceivableLO 3Interest Receivable 300Sept. 1 Interest Revenue 300($10,000 x 9% x 4/12 = $ 300)Illustration 8-15Timeline of interest earnedIllustration: Suppose instead that Wolder Co. prepares financial statements as of September 30. The adjusting entry by Wolder is for four months ending Sept. 30.Accrual of Interest ReceivableLO 3Illustration: Prepare the entry Wolder’s would make to record the honoring of the Higley note on November 1.Cash 10,375 Notes Receivable 10,000 Interest Receivable 300 Interest Revenue ($10,000 × 9% × 1/12) 75Nov. 1Accrual of Interest ReceivableLO 3Gambit Stores accepts from Leonard Co. a $3,400, 90-day, 6% note dated May 10 in settlement of Leonard’s overdue open account. The note matures on August 8. What entry does Gambit make at the maturity date, assuming Leonard pays the note and interest in full at that time?SOLUTIONNotes ReceivableDO IT!3Interest payable at maturity date = $3,400 × 6% × 90/360 = $51Cash 3,451 Notes Receivable 3,400 Interest Revenue 51LO 3Illustration 8-16 Balance sheet presentation of receivablesLEARNING OBJECTIVEDescribe the statement presentation of receivables and the principles of receivables management.4LO 4Managing accounts receivable involves five steps:Determine to whom to extend credit.Establish a payment period.Monitor collections.Evaluate the liquidity of receivables.Accelerate cash receipts from receivables when necessary.MANAGING RECEIVABLESLO 4If the credit policy is too tight, you will lose sales. If the credit policy is too loose, you may sell to customers who will pay either very late or not at all. It is important to check references on potential new customers as well as periodically to check the financial health of continuing customers.Extending CreditMANAGING RECEIVABLESLO 4ACCOUNTING ACROSS THE ORGANIZATIONBad Information Can Lead to Bad LoansMany factors contributed to the recent credit crisis. One significant factor that resulted in many bad loans was a failure by lenders to investigate loan customers sufficiently. For example, Countrywide Financial Corporation wrote many loans under its “Fast and Easy” loan program. That program allowed borrowers to provide little or no documentation for their income or their assets. Other lenders had similar programs, which earned the nickname “liars’ loans.” One study found that in these situations, 60% of applicants overstated their incomes by more than 50% in order to qualify for a loan. Critics of the banking industry say that because loan officers were compensated for loan volume, and because banks were selling the loans to investors rather than holding them, the lenders had little incentive to investigate the borrowers’ creditworthiness. Sources: Glenn R. Simpson and James R. Hagerty, “Countrywide Loss Focuses Attention on Underwriting,” Wall Street Journal (April 30, 2008), p. B1; and Michael Corkery, “Fraud Seen as Driver in Wave of Foreclosures,” Wall Street Journal (December 21,2007), p. A1.LO 4Companies should determine a required payment period and communicate that policy to their customers.The payment period should be consistent with that of competitors.Establishing a Payment PeriodMANAGING RECEIVABLESLO 4Companies should prepare an accounts receivable aging schedule at least monthly.Helps managers estimate the timing of future cash inflows.Provides information about the collection experience of the company and identifies problem accounts.Significant concentrations of credit risk must be discussed in the notes to its financial statements.Monitoring CollectionsMANAGING RECEIVABLESLO 4Illustration 8-18 Excerpt from Sketchers’ note on concentration of credit riskMANAGING RECEIVABLESLO 4Accounts Receivable Turnover:Assess the liquidity of the receivables.Measure the number of times, on average, a company collects receivables during the period.Average collection period:Used to assess effectiveness of credit and collection policies. Collection period should not exceed credit term period.EVALUATING LIQUIDITY OF RECEIVABLESLO 4ILLUSTRATION 8-19Accounts receivable turnoverand average collection periodEVALUATING LIQUIDITY OF RECEIVABLESLO 4Three reasons for the sale of receivables:Size. Companies may sell receivables because they may be the only reasonable source of cash. Billing and collection are often time-consuming and costly.ACCELERATING CASH RECEIPTSLO 4MANAGING RECEIVABLESIllustration 8-20 Managing receivablesLO 4In 2017, Lebron James Company had net credit sales of $923,795 for the year. It had a beginning accounts receivable (net) balance of $38,275 and an ending accounts receivable (net) balance of $35,988. Compute Lebron James Company’s accounts receivable turnover and average collection period in days.SOLUTIONAnalysis of ReceivablesDO IT!4LO 4KEY POINTSA Look at IFRSLEARNING OBJECTIVECompare the accounting for receivables under GAAP and IFRS.5SimilaritiesThe recording of receivables, recognition of sales returns and allowances and sales discounts, and the allowance method to record bad debts are the same between GAAP and IFRS.Both IFRS and GAAP often use the term impairment to indicate that a receivable or a percentage of receivables may not be collected.LO 5SimilaritiesThe FASB and IASB have worked to implement fair value measurement (the amount they currently could be sold for) for financial instruments, such as receivables. Both Boards have faced bitter opposition from various factions. DifferencesAlthough IFRS implies that receivables with different characteristics should be reported separately, there is no standard that mandates this segregation.A Look at IFRSLO 5 DifferencesIFRS and GAAP differ in the criteria used to determine how to record a factoring transaction. IFRS uses a combination approach focused on risks and rewards and loss of control. GAAP uses loss of control as the primary criterion. In addition, IFRS permits partial derecognition of receivables; GAAP does not.A Look at IFRSLO 5 A Look at IFRSLOOKING TO THE FUTUREBoth the IASB and the FASB have indicated that they believe that financial statements would be more transparent and understandable if companies recorded and reported all financial instruments at fair value. That said, in IFRS 9, which was issued in 2009, the IASB created a split model, where some financial instruments are recorded at fair value, but other financial assets, such as loans and receivables, can be accounted for at amortized cost if certain criteria are met. Critics say that this can result in two companies with identical securities accounting for those securities in different ways. A proposal by the FASB would require that practically all equity instruments be reported at fair value, and that debt instruments may or may not be reported at fair value depending on whether certain criteria are met.LO 5 IFRS PracticeWhich of the following statements is false?Receivables include equity securities purchased by the company.Receivables include credit card receivables.Receivables include amounts owed by employees as a result of company loans to employees.Receivables include amounts resulting from transactions with customers.A Look at IFRSLO 5 IFRS PracticeIn recording a factoring transaction:IFRS focuses on loss of control.GAAP focuses on loss of control and risks and rewards.IFRS and GAAP allow partial derecognition.IFRS allows partial derecognition.A Look at IFRSLO 5 IFRS PracticeUnder IFRS:the entry to record estimated uncollected accounts is the same as GAAP.it is always acceptable to use the direct write-off method.all financial instruments are recorded at fair value.None of the above.A Look at IFRSLO 5 “Copyright © 2016 John Wiley & Sons, Inc. All rights reserved. Reproduction or translation of this work beyond that permitted in Section 117 of the 1976 United States Copyright Act without the express written permission of the copyright owner is unlawful. Request for further information should be addressed to the Permissions Department, John Wiley & Sons, Inc. The purchaser may make back-up copies for his/her own use only and not for distribution or resale. The Publisher assumes no responsibility for errors, omissions, or damages, caused by the use of these programs or from the use of the information contained herein.”COPYRIGHT