Accounting Project:

Bazzi International Group

Ahmad Bazzi
Kassem Abdallah
Instructor: Dr.Fadi Kassis
1. Our local business of choice is “Bazzi International Group”, a
Lebanese retail company that offer wide variety of casual and sports
attire and footwear. They are the exclusive agents of several
international brands such as Kelme, Rider, Cartago, Picadilly, and
other brands that we will be talking more about in the intangible asset
part of this paper

2. The list of plant assets of our company is not very long. On their
balance sheet they reported building that is located in Hadath, Mont
Lebanon, fixture and furniture such as show rooms and storage units,
vehicles to move and carry goods, and other equipment as plant assets.
3. We interviewed the head of accounting department and she disclosed with us
some of the details regarding the company’s plant assets:

Asset Cost Depreciation rate Useful Life (years) Depreciation Method

$300,000 2.50% 40 Striaght line
Building
$120,000 8% 10 Straight line
Fixture & furniture
$60,000 12.50% 8 Units of production
Vehicles
$40,000 10% 3 Straight line
Other equipment
4. The business’s main intangible assets are their exclusive
rights to sell the brands they are offering. It is a contractual
agreement under which the company acts as the legally
recognized representative of the supplier’s brand. This makes the
operations more predictable and protects the company against
rivals offering the same goods. Our company has the exclusive
rights for:

- Grendene, world’s largest manufacturer of sandals headquartered in Brazil. Under this contract
that is renewed every 6 years
- - Kelme, a Spanish sportswear company that manufactures products destined for football, futsal,
basketball, tennis and running markets.
- - Piccadilly, a Brazilian footwear company that mainly target women. Our company sells boots
and high heel products from this supplier.
- - BiBi, a Brazilian company that operates mainly in the children’s footwear market.
- - Adrun, a Brazilian sports footwear company that manufactures unisex sneakers and
performance shoes
 5. These are some examples of the transactions that we have gain from our
company:

• Buying a vehicle for company goods transportation: • Buying Inventory from Grendene:
• For customers buying goods: • For building:
Historically, our company recorded losses on their credit sales that ranged
between 3% to 5%. So they can use this historical percentage by multiplying
it to the total receivables account to get an approximation of their allowance
for doubtful accounts. However, due to the current depression in Lebanon, the
company now is very stringent in its credit policies and does not offer credit
sales unless to very few costumers that they are confident enough in their
ability to repay them, and even so, the term is set for a maximum of one
month.

Therefore, the company strives to offer only good debt, and expects only a
small proportion of it to be unpaid. The definite percentage is not easily
arrived at as the overall conditions in the market and economy are
uncertain. When we asked her to give us a number nevertheless, she said
that 1% is a reasonable figure.