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Instruction 14-9
the Number of Cases of Merlot Wine Sold

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Instruction 14-9
The number of cases of merlot wine sold by a Barossa Valley Winery in an 8-year period follows.
 Year  Cases of Wine 20032702004356200539820064562007358200850020094102010376\begin{array} { c c } \text { Year }& \text { Cases of Wine } \\2003 & 270 \\2004& 356 \\2005 & 398 \\ 2006& 456 \\2007 & 358 \\2008 & 500 \\ 2009& 410 \\2010&376\\\end{array}
-Referring to Instruction 14-9,use the Holt-Winters method of fitting wine sales to compute the smoothed level and trend with a smoothing constant of 0.8 for both level and trend.


Definitions:

Balance Sheet Approach

A method for evaluating foreign subsidiaries in which assets and liabilities are translated at the current exchange rate, whereas equity accounts are translated at the historical exchange rates.

Allowance for Doubtful Accounts

An accounting provision made for potential future bad debts that might arise from credit sales being unpaid.

Uncollectible Accounts

Receivables that are considered to be uncollectable and are written off as a loss because payment is highly unlikely.

Net Credit Sales

The total value of sales made on credit during a period, minus any returns or allowances.

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