2024 – E6 2 Determine the due date and the amount of interest due at maturity on the following

E6-2 Determine the due date and the amount of interest due at maturity on the following notes:

Date of Note Face Amount Interest Rate Term of Note

a. January 6 $40,000 9% 45 days

b. March 23 9,000 10 60 days

c. May 30 12,000 12 90 days

d. August 30 18,000 10 120 days

e. October 110,500 8 60 days

E6-7

Estimating doubtful accounts
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:

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
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.

Commodity Inventory Quantity Unit Cost Price Unit Market Price

Buffal 35 $115 $120

Dakota 67 90 75

Frontier 8 300 280

Midwest 83 40 30

Rainbow 100 90 94