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1 Record service revenue of $50,000 sold on account during January. 2 Record the adjusting entry for bad debts as of January 31 using 1

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  • 1

    Record service revenue of $50,000 sold on account during January.

  • 2

    Record the adjusting entry for bad debts as of January 31 using 1 percent of credit sales.

  • 3

    Record the collection of $25,000 of outstanding accounts receivables on February 4.

  • 4

    Record the write-off of a $150 account receivable on February 15.

  • 5

    Record service revenue of $40,000 provided on account during February.

  • 6

    Record the adjusting entry for bad debts as of February 28 using 1 percent of credit sales.

  • 7

    Record the receipt of a note on March 1 for a $2,200 loan to an employee.

  • 8

    Record the reversal of a $150 account receivable previously written off one month earlier.

  • 9

    Record the receipt of cash of $150 from the customer.

  • 10

    Record the interest accrued on the note as of March 31.

  • 11

    Record the adjusting entry for bad debts as of March 31 using the aging of accounts receivable method

General journal entry options:

  • No Journal Entry Required
  • Accounts Payable
  • Accounts Receivable
  • Accumulated Amortization
  • Accumulated DepreciationBuildings
  • Accumulated DepreciationEquipment
  • Accumulated DepreciationVehicles
  • Accumulated Other Comprehensive Income
  • Additional Paid-In Capital, Common Stock
  • Additional Paid-In Capital, Preferred Stock
  • Additional Paid-In Capital, Treasury Stock
  • Advertising Expense
  • Allowance for Doubtful Accounts
  • Amortization Expense
  • Bad Debt Expense
  • Bonds Payable
  • Buildings
  • Cash
  • Cash Equivalents
  • Cash Overage
  • Cash Shortage
  • Charitable Contributions Payable
  • Common Stock
  • Copyrights
  • Cost of Goods Sold
  • Deferred Revenue
  • Delivery Expense
  • Depreciation Expense
  • Discount on Bonds Payable
  • Dividends
  • Dividends Payable
  • Donation Revenue
  • Equipment
  • FICA Payable
  • Franchise Rights
  • Gain on Bond Retirement
  • Gain on Disposal of PPE
  • Goodwill
  • Impairment Loss
  • Income Tax Expense
  • Income Tax Payable
  • Insurance Expense
  • Interest Expense
  • Interest Payable
  • Interest Receivable
  • Interest Revenue
  • Inventories
  • Inventory - Estimated Returns
  • Land
  • Legal Expense
  • Licensing Rights
  • Logo and Trademarks
  • Loss on Bond Retirement
  • Loss on Disposal of PPE
  • Natural Resource Assets
  • Notes Payable (long-term)
  • Notes Payable (short-term)
  • Notes Receivable (long-term)
  • Notes Receivable (short-term)
  • Office Expenses
  • Other Current Assets
  • Other Noncurrent Assets
  • Other Noncurrent Liabilities
  • Other Operating Expenses
  • Other Revenue
  • Patents
  • Payroll Tax Expense
  • Petty Cash
  • Preferred Stock
  • Premium on Bonds Payable
  • Prepaid Advertising
  • Prepaid Insurance
  • Prepaid Rent
  • Refund Liability
  • Rent Expense
  • Rent Revenue
  • Repairs and Maintenance Expense
  • Restricted Cash (long-term)
  • Restricted Cash (short-term)
  • Retained Earnings
  • Salaries and Wages Expense
  • Salaries and Wages Payable
  • Sales Revenue
  • Sales Tax Payable
  • Service Revenue
  • Short-term Investments
  • Software
  • Subscription Revenue
  • Supplies
  • Supplies Expense
  • Travel Expense
  • Treasury Stock
  • Unemployment Tax Payable
  • Utilities Expense
  • Vehicles
  • Withheld Income Taxes Payable

image text in transcribedimage text in transcribed

Required information [The following information applies to the questions displayed below. Web Wizard, Inc., has provided information technology services for several years. For the first two months of the current year, the company has used the percentage of credit sales method to estimate bad debts. At the end of the first quarter, the company switched to the aging of accounts recelvable method. The company entered into the following partial list of transactions during the first quarter a. During January, the company provided services for $50,000 on credit. b. On January 31, the company estimated bad debts using 1 percent of credit sales c. On February 4, the company collected $25,000 of accounts receivable d. On February 15, the company wrote off a $150 account receivable e. During February, the company provided services for $40,000 on credit. f On February 28, the company estimated bad debts using 1 percent of credit sales g. On March 1, the company loaned $2,200 to an employee, who signed a 6% note, due in 6 months h. On March 15, the company collected $150 on the account written off one month earlier. . On March 31, the company accrued interest earned on the note . On March 31, the company adjusted for uncollectible accounts, based on an aging analysis (below). Allowance for Doubtful Accounts has an unadjusted credit balance of $1,300 Number of Days Unpaid Customer Total 0-30 31-60 61-90 Over 90 Alabama Tourism Bayside Bungalows Others (not shown to save space) Xciting Xcursions $ 230 110$90 9,400 $20,320 8,300 $9,490 500 19,200 390 30 1,100 1,130 1,400 $ 500 900 7,800 390 Total Accounts Receivable Estimated uncollectible (%) 2% 10% 20% 30% 2. Prepare the journal entries for items (a)-l). (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Do not round intermediate calculations.) 2. Prepare the journal entries for items (a)-(). (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Do not round intermediate calculations.) View transaction list Journal entry worksheet 2 4 6 7 Record service revenue of $50,000 sold on account during January. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal 3. Show how Accounts Receivable, Notes Receivable, and their related accounts would be reported in the current assets section of a classified balance sheet at the end of the quarter on March 31. (Do not round intermediate calculations.) WEB WIZARD, INC. Partial Balance Sheet At March 31 Assets Current Assets Accounts Receivable, Net of Allowance 4. Sales Revenue and Service Revenue are two income statement accounts that relate to Accounts Receivable. Name two other accounts related to Accounts Receivable and Notes Receivable that would be reported on the income statement and indicate whether each would appear before, or after, Income from Operations. Web Wizard would report Income from Operations. Income from Operations

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