Question
Hide Time Remaining A Get Well Cell (GWC) provides cell phone-related services. The company uses the percentage of sales method to estimate bad debts for
Hide Time Remaining A Get Well Cell (GWC) provides cell phone-related services. The company uses the percentage of 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 receivable method. The company entered into the following transactions during the first quarter of 2020: 1. During January, GWC provided services for $9,800 on account. 2. On January 31, GWC estimated bad debt using 1% of sales. 3. On February 5, GWC wrote off a customer balance of $900 that was deemed uncollectible. 4. During February, GWC provided services for $6,300 on account. 5. On February 29, GWC estimated bad debt using 1% of sales. 6. On March 1, GWC loaned $3,600 to an employee who signed a 9% note, due in four months, 7. On March 31, GWC adjusted for uncollectible accounts, based on the aging analysis presented below, which includes the preceding transactions (and others no listed). Prior to the adjustment, the Allowance for Doubtful Accounts had an unadjusted credit balance of $300. 8. On March 31, GWC accrued interest earned on the note.. Accounts Receivable Amount Estimated Uncollectible (%) Required: $4,500 6% $2,900 Total 0-30 Days31-60 Days61-90 DaysOver 90 Days $11,800 $1,400 $3,000 18% 30% 75% Prepare journal entries for each of items 1 to 8. Record your answers in the space provided below. NOTE: Use full proper account names, as shown in class and in the textbook: do NOT use abbreviations. Enter all amounts in whole dollars only, with NC special characters (dollar sign, comma, etc.) of any kind. For example, for $1,000, write 1000 only, not 1000.00, not $1,000, etc. Item #Account Name(s) 1. Accounts receivable Debit 9800 Credit Service revenue 2 Bad debt sales 9800 98 198 MacBook Air Item #Account Name(s) Debit Credit 1. Accounts receivable 9800 Service revenue 9800 2. Bad debt sales 98 98 3. Bad debt uncollectible 900 Accounts receivale 900 4 5. 6. 7. 8. Mark for Review What's This? MacBook Air
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