accounting homework unit 7

E6-2

Determine due date and interest on notes

Obj|1

✓ Feb. 20, $450

Determine the due date and the amount of interest due at maturity on the following notes:

E6-7

Estimating doubtful accounts

Obj|4

Newbury Bikes Co. is a wholesaler of motorcycle supplies. An aging of the company's accounts receivable on December 31, 2012, and a historical analysis of the percentage of uncollectible accounts in each age category are as follows:

Age interval                              Balance                                    Percent Uncollectible

Not Past Due                           $677,000                                             ½%

1-30 Days Past Due                 $158,000                                             2%

31-60 Days Past Due               $54,000                                               5%

61-90 Days Past Due               $20,500                                               15%

91-180 Days Past Due             $15,000                                               40%

Over 180 Days Past Due          $10,500                                               75%

                                    $925,000

   Estimate what the balance of the allowance for doubtful accounts should be as of December 31, 2012.

E6-18

Lower-of-cost-or-market inventory

Obj|8

✓ LCM: $22,780

On the basis of the following data, determine the value of the inventory at the lower of cost or market. Assemble the data in the form illustrated in Exhibit 9.