Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

8 Homework Help Save & Exit Submit Check my work PA8-4 Accounting for Accounts and Notes Receivable Transactions [LO 8-2, LO 8-3] (The following information

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
8 Homework Help Save & Exit Submit Check my work PA8-4 Accounting for Accounts and Notes Receivable Transactions [LO 8-2, LO 8-3] (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 receivable method. The company entered into the following partial list of transactions during the first quarter. a. During January, the company provided services for $42,000 on credit. b. On January 31, the company estimated bad debts using 1 percent of credit sales. c. On February 4, the company collected $21,000 of accounts receivable. d. On February 15, the company wrote off a $200 account receivable. e. During February, the company provided services for $32,000 on credit. f. On February 28, the company estimated bad debts using 1 percent of credit sales. g. On March 1, the company loaned $2,800 to an employee, who signed a 6% note, due in 6 months. h. On March 15, the company collected $200 on the account written off one month earlies 1. On March 31, the company accrued interest earned on the note. J. 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 $1,220, Customer Alabama Tourism Bayside Bungalows Others (not shown to save space) Xciting Xcursions Total Accounts Receivable Estimated Uncollectible (8) Total $ 200 420 17,500 380 $18,500 Number of Days Unpaid 0-30 3 1-60 61-90 Over 90 $ 120 $ 70 $ 10 $ 420 7,000 8,600 1,200 700 380 $7,500 $8,670 $1,210 $1,120 28 108 208 358 Check my work Required information calculations.) Assets Stockholders Eq Homework Help Save & Exit Check my PA8-4 Accounting for Accounts and Notes Receivable Transactions [LO 8-2, LO 8-3) (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 receivable method. The company entered into the following partial list of transactions during the first quarter. a. During January, the company provided services for $42,000 on credit. b. On January 31, the company estimated bad debts using 1 percent of credit sales. c. On February 4, the company collected $21,000 of accounts receivable. d. On February 15, the company wrote off a $200 account receivable. e. During February, the company provided services for $32,000 on credit. 1. On February 28, the company estimated bad debts using 1 percent of credit sales. g. On March 1, the company loaned $2,800 to an employee, who signed a 6% note, due in 6 months. h. On March 15, the company collected $200 on the account written off one month earlier. 1. On March 31, the company accrued interest earned on the note. J. 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 $1,220. Customer Alabama Tourism Bayside Bungalows Others (not shown to save space) Xciting Xcursions Total Accounts Receivable Estimated Uncollectible (8) Number of Days Unpaid Total 0-30 3 1-60 61-90 Over 90 $ 200 $ 120 $ 70 $ 10 420 S 420 17,500 7,000 8,600 1,200 700 380380 $18,500 $ 7,500 $8,670 $1,210 $1,120 2 10% 20% 35 Check my work Customer Alabama Tourism Bayside Bungalows Others (not shown to save space) Xciting Xcursions Total Accounts Receivable Estimated Uncollectible (N) Total $ 200 420 17,500 380 $18,500 Number of Days Unpaid 0-3031-6061-90 Over 90 S 120 $ 70 $ 10 $ 420 7,000 8,600 1,200 380 $7,500 $8,670 $1,210 $1,120 100 200 350 700 PA8-4 Part 1 Required: 1. For items (a)-0), analyze the transaction to determine effects on specific financial statement accounts and the overall accounting equation. (Enter any decreases to Assets, Liabilities, or Stockholders Equity with a minus sign. Do not round Intermediate calculations.) Required: 1. For items (al-C), analyze the transaction to determine effects on specific financial statement accounts and the overall accounting equation. (Enter any decreases to Assets, Liabilities, or Stockholders Equity with a minus sign. Do not round intermediate calculations.) Assets Liabilities Stockholders' AP Check my wom red information ition to determine effects on specific financial statement accounts and the overall accounting Assets, Liabilities, or Stockholders Equity with a minus sign. Do not round intermediate Liabilities Stockholders' Equity

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Forensic And Investigative Accounting

Authors: Crumbley D. Larry, Fenton Edmund D., Jr. Smith G. Stevenson

9th Edition

0808053221, 9780808053224

More Books

Students also viewed these Accounting questions

Question

Conduct an effective performance feedback session. page 376

Answered: 1 week ago