MPAD EXERCISE 7-14 Effect of doubtful accounts on net income Objectives 4,5 Using the data in Exercise 7-13,assume that during the second year of operations O'Hara Automotive Supply Co.had net sales of $4,800,000, wrote off $114,800 of accounts as uncollectible using the direct write-off method, and reported net income of $262,300. a. Determine what net income would have been in the second year if the allowance method (using 2%% of net sales) had been used in both the first and second years. b. Determine what the balance of the allowance for doubtful accounts would have been at the end of the second year if the allowance method had been used in both the first and second years. EXERCISE 7-15 Determine due date and interest on notes Objective 6 a.August 31,$120 Determine the due date and the amount of interest due at maturity on the following notes: Date of Note a. June 2.an8,000 c. October 1 12,500 Face Amount Term of Note Interest Rate Due Date Interest Due 8% 12% 60 days March 6.,000 m .0 days - 99%