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# \$5.00chapter 6 Survey of Accounting Warren 5th exercises 2, 7 and 18

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• Due on Apr. 20, 2012
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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. October 1      \$10,500              8%           60 days
b. August 30      18,000               10            120 days
c. May 30          12,000               12             90 days
d. March 6         15,000                9             60 days
e. May 23           9,000               10             60 days

7 Fonda Bikes Co. is a wholesaler of motorcycle supplies. An aging of the company’s
accounts receivable on December 31, 2010, 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                   \$567,000                  ˝%
1–30 days past due            58,000                   3
31–60 days past due          29,000                   7
61–90 days past due          20,500                 15
91–180 days past due        15,000                 40
Over 180 days past due     10,500                  75
\$700,000

18 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
Aquarius                20                       \$ 80                 \$ 92
Capricorn               50                          70                   65
Leo                        8                         300                 280
Scorpio                 30                           40                   30
Taurus                100                           90                   94

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Chapter 6 Exercise 6-2_E6-7_and E6-18 100% correct in given EXCEL format APRIL 2012
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