N Check my wo 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 $48,000 on credit b. On January 31, the company estimated bad debts using 1 percent of credit sales. c. On February 4, the company collected $24,000 of accounts receivable. d. On February 15, the company wrote off a $200 account receivable. e. During February, the company provided services for $38,000 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 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 an aging analysis (below). Allowance for Doubtful Accounts has an unadjusted credit balance of $1.280. 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 Total Accounts Receivable Estimated Uncollectible () 200 120 70 10 480 480 18,700 380 7,600 380 $8,100 2 9,200 1,200 700 $19,760 $9,270 10% $1,210 $1,180 35% 208 Prev 4 5 6 of 7 Next> M 2 JUL 2 W P N Check my wo 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 $48,000 on credit b. On January 31, the company estimated bad debts using 1 percent of credit sales. c. On February 4, the company collected $24,000 of accounts receivable. d. On February 15, the company wrote off a $200 account receivable. e. During February, the company provided services for $38,000 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 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 an aging analysis (below). Allowance for Doubtful Accounts has an unadjusted credit balance of $1.280. 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 Total Accounts Receivable Estimated Uncollectible () 200 120 70 10 480 480 18,700 380 7,600 380 $8,100 2 9,200 1,200 700 $19,760 $9,270 10% $1,210 $1,180 35% 208 Prev 4 5 6 of 7 Next> M 2 JUL 2 W P
