Check my 4 ! Required information Part 1 of 4 4 (The following information applies to the questions displayed below.) 10 points Web Wizard, Incorporated, 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. eBook Print a. During January, the company provided services for $31,000 on credit. b. On January 31, the company estimated bad debts using 2 percent of credit sales. c. On February 4, the company collected $15,500 of accounts receivable. d. On February 15, the company wrote off $150 account receivable. e. During February, the company provided services for $21,000 on credit. f. On February 28, the company estimated bad debts using 2 percent of credit sales. g. On March 1, the company loaned $2,600 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. i. On March 31, the company accrued interest earned on the note. j. On March 31, the company adjusted for uncollectible accounts, based on the following aging analysis, which includes the preceding transactions as well as others not listed). Prior to the adjustment, Allowance for Doubtful Accounts has an unadjusted credit balance of $1,110. References Number of Days Unpaid 31 to 60 61 to 90 $ 90 $ 30 0 to 30 $ 110 Over 90 Customer Alabama Tourism Bayside Bungalows Others (not shown to save space) Xciting Xcursions Total Accounts Receivable Estimated Uncollectible (%) Total $ 230 310 15,400 390 $ 16,330 $ 310 900 7,500 1, 100 5,900 390 $ 6,400 3% $ 7,590 10% $ 1,130 20% $ 1,210 30% Check my 4 Estimated Uncollectible (%) 3% 10% 20% 30% Required: Part 1 of 4 4 1. For items (a) to (i), 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.) 10 points Assets Liabilities + Stockholders' Equity a. Accounts Receivable 31,000/= + eBook b. Allowance for Doubtful Accounts + c. Cash 15,500] = + c. Accounts Receivable + Print + d. Allowance for Doubtful Accounts d. Accounts Receivable (15,500) = 150] = (150) = 21,000/= + e. Accounts Receivable + References f. Allowance for Doubtful Accounts - + g. Notes Receivable (short-term) + g. Cash = + = + h. Accounts Receivable h. Allowance for Doubtful Accounts = + h. Cash + + h. Accounts Receivable i. Interest Receivable j. Allowance for Doubtful Accounts + +
