1. Your company rents computers to local businesses and schools. You have 3,600 computers with a book value of $180,500. As a result of changing technology, your computers are more difficult to rent, so you must dramatically reduce the rental price, which causes a decrease in estimated future cash flows . The fair value of the computers is estimated at $138,000 due to their outdated technology. How much impairment loss your business must report?

2. What is the annual interest rate charged on a $61,000 3-month note receivable if total interest is $2,440?

3. Total doubtful accounts at the end of the year is estimated at $33,500 based on the age of accounts receivable. If the balance of the Allowance for Doubtful Accounts is a debit of $12,100 before adjustment, what is the current year bad debt expense?