Wallys Widget Company (WWC) incorporated near the end of 2011. Operations began in January of 2012. WWC prepares adjusting entries and financial statements at the end of each month. Balances in the accounts at the end of January are as follows:

Cash	$	19,370		Unearned Revenue (45 units)	$	4,600
Accounts Receivable	$	10,400		Accounts Payable (Jan Rent)	$	1,800
Allowance for Doubtful Accounts	$	(1,150)		Notes Payable	$	16,000
Inventory (50 units)	$	4,000		Contributed Capital	$	5,500
				Retained Earnings Feb 1, 2012	$	4,720

	WWC establishes a policy that it will sell inventory at $180 per unit.
	In January, WWC received a $4,600 advance for 45 units, as reflected in Unearned Revenue.
	WWCs February 1 inventory balance consisted of 50 units at a total cost of $4,000.
	WWCs note payable accrues interest at a 12% annual rate.
	WWC will use the FIFO inventory method and record COGS on a perpetual basis.

February Transactions
02/01	Included in WWCs February 1 Accounts Receivable balance is a $2,000 account due from Kit Kat, a WWC customer. Kit Kat is having cash flow problems and cannot pay its balance at this time. WWC arranges with Kit Kat to convert the $2,000 balance to a note, and Kit Kat signs a 6-month note, at 12% annual interest. The principal and all interest will be due and payable to WWC on August 1, 2012.
02/02	WWC paid a $750 insurance premium covering the month of February. The amount paid is recorded directly as an expense.
02/05	An additional 160 units of inventory are purchased on account by WWC for $12,000 terms 2/15, n30.
02/05	WWC paid Federal Express $320 to have the 160 units of inventory delivered overnight. Delivery occurred on 02/06.
02/10	Sales of 130 units of inventory occurred during the period of 02/07 02/10. The sales terms are 2/10, net 30.
02/15	The 45 units that were paid for in advance and recorded in January are delivered to the customer.
02/15	10 units of the inventory that had been sold on 2/10 are returned to WWC. The units are not damaged and can be resold. Therefore, they are returned to inventory. Assume the units returned are from the 2/05 purchase.
02/16	WWC pays the first 2 weeks wages to the employees. The total paid is $2,700.
02/17	Paid in full the amount owed for the 2/05 purchase of inventory. WWC records purchase discounts in the current period rather than as a reduction of inventory costs.
02/18	Wrote off a customers account in the amount of $1,250.
02/19	$3,600 of rent for January and February was paid. Because all of the rent will soon expire, the February portion of the payment is charged directly to expense.
02/19	Collected $8,500 of customers Accounts Receivable. Of the $8,500, the discount was taken by customers on $6,000 of account balances; therefore WWC received less than $8,500.
02/26	WWC recovered $450 cash from the customer whose account had previously been written off (see 02/18).
02/27	A $750 utility bill for February arrived. It is due on March 15 and will be paid then.
02/28	WWC declared and paid a $500 cash dividend.

Adjusting Entries:

02/29	Record the $2,700 employee salary that is owed but will be paid March 1.
02/29	WWC decides to use the aging method to estimate uncollectible accounts. WWC determines 6% of the ending balance is the appropriate end of February estimate of uncollectible accounts.
02/29	Record February interest expense accrued on the note payable.
02/29	Record one months interest earned Kit Kats note (see 02/01).

I already did mostly everything, so here are my journal entries: (I only need help with Feb 29b and questions 1-7 at the end.)

Date	General Journal	Debit	Credit
Feb. 1	Notes Receivable	2,000
	Accounts Receivable		2,000
			0
			0
			0
			0
Feb. 2	Insurance Expense	750
	Cash		750
			0
			0
			0
			0
Feb. 5	Inventory	12,000
	Accounts Payable		12,000
			0
			0
			0
			0
Feb. 6	Inventory	320
	Cash		320
			0
			0
			0
			0
Feb. 10a	Accounts Receivable	23,400
	Sales Revenue		23,400
			0
			0
			0
			0
Feb. 10b	Cost of Goods Sold	10,160
	Inventory		10,160
			0
			0
			0
			0
Feb. 15a	Unearned Revenue	4,600
	Sales Revenue		4,600
			0
			0
			0
			0
Feb. 15b	Cost of Goods Sold	3,465
	Inventory		3,465
			0
			0
			0
			0
Feb. 15c	Inventory	770
	Cost of Goods Sold		770
			0
			0
			0
			0
Feb. 15d	Sales Returns and Allowance	1,800
	Accounts Receivable		1,800
			0
			0
			0
			0
Feb. 16	Wages Expense	2,700
	Cash		2,700
			0
			0
			0
			0
Feb. 17	Accounts Payable	12,000
	Cash		11,760
	Inventory		240
			0
			0
			0
Feb. 18	Allowance for Doubtful Accounts	1,250
	Accounts Receivable		1,250
			0
			0
			0
			0
Feb. 19a	Accounts Payable	1,800
	Rent Expense	1,800
	Cash		3,600
			0
			0
			0
Feb. 19b	Cash	8,380
	Sales Discounts	120
	Accounts Receivable		8,500
			0
			0
			0
Feb. 26a	Accounts Receivable	450
	Allowance for Doubtful Accounts		450
			0
			0
			0
			0
Feb. 26b	Cash	450
	Accounts Receivable		450
			0
			0
			0
			0
Feb. 27	Utility Expense	750
	Accounts Payable		750
			0
			0
			0
			0
Feb. 28	Dividends Declared	500
	Cash		500
			0
			0
			0
			0
Feb. 29a	Wages Expense	2,700
	Wages Payable		2,700
			0
			0
			0
			0
Feb. 29b	Bad Debt Expense	NEED HELP!
	Allowance for Doubtful Accounts		NEED HELP!
			0
			0
			0
			0
Feb. 29c	Interest Expense	160
	Interest Payable		160
			0
			0
			0
			0
Feb. 29d	Interest Receivable	20
	Interest Revenue		20
			0
			0
			0
			0

1.	What is the WWCs gross profit for February?

2.	What is the gross profit percentage? (Round your answer to 1 decimal place.)

3.	What were WWCs net sales for February?

4.	If WWC had chosen to use the percentage of sales method, taking 2% of sales, instead of using the aging method WWC would have reported ------ as bad debt expense for February and a net Accounts Recievable of ------ (Round your answers to 2 decimal places.)

5.	How many units are in ending inventory?

6.	What is the cost per unit of the ending inventory?

7.	If WWC had chosen LIFO, calculate its February cost of goods sold.