Elite Events Corporation has provided event planning services for several years. The company uses the percentage of credit sales method to estimate bad debts for internal monthly reporting purposes. At the end of each quarter, the company adjusts its records using 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 $250,000 on credit. b. On January 31, the company estimated bad debts using 2 percent of credit sales. c. On February 4, the company collected $200,000 of accounts receivable d. On February 15, the company wrote off a $2,500 account recelvable. e. During February, the company provided services for $200,000 on credit. f. On February 28, the company estimated bad debts using 2 percent of credit sales. g. On March 1, the company loaned $20,000 to an employee who signed a 6% note, due in 9 months. h. On March 15, the company collected $2,500 on the account written off one month earlier i. On March 31, the company accrued interest earned on the note On March 31, the company adjusted for uncollectible accounts, based on the following aging analysis. Allowance for Doubtful Accounts has an unadjusted credit balance of $8,500. Number of Days Unpaid Customer Total 0-30 31-60 61-90 Over 90 $ 2,000 $1,000 1,000 2,000 Aerosmith Biggie Smal Others (not shown to save space) ZZ Top $ 1,000 $1,000 8,500 97,000 38,500 41,500 8,500 6,500 6,500 Total Accounts Receivable Estimated uncollectible (%) $107,500 $46,000 $42,500 $ 9,500 $ 9,500 40% 5% 15% 25%