EX 9-7 Number of days past due

Honest Abe’s Auto Supply distributes new and used automobile parts to local dealers
throughout the Northeast. Honest Abe’s credit terms are n/30. As of the end of business
on July 31, the following accounts receivable were past due:

Account                                              Due Date                   Amount
Alpha Auto                                           May 15                    $ 9,000
Best Auto                                              July 8                         3,000
Downtown Repair                               March 18                     7,500
Lucky’s Auto Repair                            June 1                         5,000
Pit Stop Auto                                        June 3                           750
Sally’s                                                 April 12                      13,000
Trident Auto                                        May 31                        1,500
Washburn Repair & Tow                   March 2                        1,500
Determine the number of days each account is past due.

Answer:
Account                             Due Date                            Number of Days Past Due
Alpha Auto                          May 15                                   77 (16 + 30 + 31)
Best Auto                               July 8                                  23 (31 – 8)
Downtown Repair            March 18                                  135 (13 + 30 + 31 + 30 + 31)
Lucky’s Auto Repair             June 1                                  60 (29 + 31)
Pit Stop Auto                         June 3                                  58 (27 + 31)
Sally’s                                 April 12                                  110 (18 + 31 + 30 + 31)
Trident Auto                         May 31                                  61 (30 + 31)
Washburn Repair & Tow   March 2                                  151 (29 + 30 + 31 + 30 + 31)

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