Need help with Feb 29b.

Wally's Widget Company (WWC) incorporated near the end of 2011. Operations began in January of 2012. WWC prepares adjusting entries and financial statements at the end of each month. Balances in the accounts at the end of January are as follows: $ 19,970 $11,000 Unearned Revenue (40 units) Accounts Payable (Jan Rent) S 4,800 S 2.200 $14,500 5,900 5,370 Allowance for Doubtful Accounts 1.350) Notes Payable Inventory (45 units) $ 3,150 Contributed Capital Retained Earrnings Feb 1, 2012 . WWC establishes a policy that it will sell inventory at $165 per unit. . In January, WWC recelved a $4,800 advance for 40 units, as reflected in Unearned Revenue WWC's February 1 inventory balance consisted of 45 units at a total cost of $3,150. WWC's note payable accrues interest at a 12% annual rate. WWC will use the FIFO inventory method and record COGS on a perpetual basis. February Transactions 02/01 Included in WWC's February 1 Accounts Receivable balance is a $1,500 account due from Kit Kat, a WWC customer. Kit Kat is having cash flow problems and cannot pay its balance at this time. WW arranges with Kit Kat to convert the $1,500 balance to a note, and Kit Kat signs a 6-month note, at 10% annual interest. The principal and all interest will be due and payable to WWC on August 1. 02/02 wWC paid a $500 insurance premium covering the month of February. The amount paid is recordesd 02/05 An additional 200 units of inventory are purchased on account by WWC for $15,000 erms 2/15, 02/05 wWC paid Federal Express $200 to have the 200 units of inventory delivered overnight. Delivery 02/10 Sales of 170 units of inventory occurrecd during the period of 02/07-0210. The sales tems are 02/15 The 40 units that were paid for in advance and recorded in January are delivered to the customer. directly as an expense occurred on 02/06. 2/10, net 30. 02/15 30 units of the inventory that had been sold on 2/10 are returned to WWC. The units are not damaged and can be resold. Therefore, they are returned to Inventory. Assume the units returnec are from the 205 purchase 02/16 WWC pays the first 2 weeks wages to the employees. The total paid is $3,100. 02/17 Paid in full the amount owed for the 2/05 purchase of inventory. WWC records purchase discounts in the current perlod rather than as a reduction of inventory costs. 02/18 Wrote off a customer's account in the amount of $1,450. 02/19 $4,400 of rent for January and February was paid. Because all of the rent will soon expire, the 02/19 Collected $8,900 of customers' Accounts Receivable. Of the $8,900, the discount was taken by 02/26 WWC recovered $490 cash from the customer whose account had previously been written off (see 02/27 A $400 utility bill for February arrived. It is due on March 15 and will be paid then. February portion of the payment is charged directly to expense customers on $5,000 of account balances; therefore WWC received less than $8,900. 02/18). 02/28 WWC declared and paid a $900 cash dividend. Adjusting Entries: 02/29 02/29 wwC decides to use the aging method to estimate uncollectible accounts. WWC determines 6% of Record the $3,100 employee salary that is owed but will be paid March 1 the ending balance is the appropriate end of February estimate of uncollectible accounts. 02/29 Record February Interest expense accrued on the note payable. 02/29 Record one month's interest earned Kit Kat's note (see 02/01) References Date General Journal No Debit Credit Feb. 1 Notes Receivable 1,500 1.500 Accounts Receivable Feb. 2 Insurance Expense 2 Cash 15,000 Feb. 5 Inventory Accounts Payable 15,000 200 Feb. 6 Inventory Cash 4 Feb. 10a 28,050 Sales Revenue 28,050 12,650 Feb. 10b Cost of Goods Sold 12.650 Inventory 4,800 Feb. 15a Unearned Revenue 4,800 Sales Revenue 3,040 Feb. 15b Cost of Goods Sold ,040 Inventory 2,280 Feb. 15c Inventory 9 Feb. 150 Inventory 2,280 9 Cost of Goods Sold 2280 4,950 Feb. 15d Sales Returns and Allowance 0 Accounts Receivable 4,950 3,100 Wages Expense Feb. 16 3.100 Cash 15,000 12 Feb. 17 Accounts Payable Cash 14,700 Inventory ,450 13 Feb. 18 Allowance for Doubtful Accounts Accounts Receivable 1,450 Feb. 19a 2.200 Accounts Payable Rent Expense 2.200 Cash 4,400 15 Feb. 19b Cash 8,800 Sales Discounts Accounts Receivable 8,900 490 16 Feb. 26a Accounts Receivable 90 Allowance for Doubtful Accounts 490 Cash Feb. 26b 17 490 Accounts Receivable 400 Utility Expense Feb. 27 18 400 Accounts Payable 900 Dividends Declared Feb. 28 19 900 Cash 3,100 Wages Expense Feb. 29a 20 3,100 Wages Payable 1,581 Bad Debt Expense Feb. 29b 21 Allowance for Doubtful Accounts 145 Interest Expense Feb. 29c 45 Interest Payable 13 Interest Receivable Feb. 29d 23 13 Interest Revenue Wally's Widget Company (WWC) incorporated near the end of 2011. Operations began in January of 2012. WWC prepares adjusting entries and financial statements at the end of each month. Balances in the accounts at the end of January are as follows: $ 19,970 $11,000 Unearned Revenue (40 units) Accounts Payable (Jan Rent) S 4,800 S 2.200 $14,500 5,900 5,370 Allowance for Doubtful Accounts 1.350) Notes Payable Inventory (45 units) $ 3,150 Contributed Capital Retained Earrnings Feb 1, 2012 . WWC establishes a policy that it will sell inventory at $165 per unit. . In January, WWC recelved a $4,800 advance for 40 units, as reflected in Unearned Revenue WWC's February 1 inventory balance consisted of 45 units at a total cost of $3,150. WWC's note payable accrues interest at a 12% annual rate. WWC will use the FIFO inventory method and record COGS on a perpetual basis. February Transactions 02/01 Included in WWC's February 1 Accounts Receivable balance is a $1,500 account due from Kit Kat, a WWC customer. Kit Kat is having cash flow problems and cannot pay its balance at this time. WW arranges with Kit Kat to convert the $1,500 balance to a note, and Kit Kat signs a 6-month note, at 10% annual interest. The principal and all interest will be due and payable to WWC on August 1. 02/02 wWC paid a $500 insurance premium covering the month of February. The amount paid is recordesd 02/05 An additional 200 units of inventory are purchased on account by WWC for $15,000 erms 2/15, 02/05 wWC paid Federal Express $200 to have the 200 units of inventory delivered overnight. Delivery 02/10 Sales of 170 units of inventory occurrecd during the period of 02/07-0210. The sales tems are 02/15 The 40 units that were paid for in advance and recorded in January are delivered to the customer. directly as an expense occurred on 02/06. 2/10, net 30. 02/15 30 units of the inventory that had been sold on 2/10 are returned to WWC. The units are not damaged and can be resold. Therefore, they are returned to Inventory. Assume the units returnec are from the 205 purchase 02/16 WWC pays the first 2 weeks wages to the employees. The total paid is $3,100. 02/17 Paid in full the amount owed for the 2/05 purchase of inventory. WWC records purchase discounts in the current perlod rather than as a reduction of inventory costs. 02/18 Wrote off a customer's account in the amount of $1,450. 02/19 $4,400 of rent for January and February was paid. Because all of the rent will soon expire, the 02/19 Collected $8,900 of customers' Accounts Receivable. Of the $8,900, the discount was taken by 02/26 WWC recovered $490 cash from the customer whose account had previously been written off (see 02/27 A $400 utility bill for February arrived. It is due on March 15 and will be paid then. February portion of the payment is charged directly to expense customers on $5,000 of account balances; therefore WWC received less than $8,900. 02/18). 02/28 WWC declared and paid a $900 cash dividend. Adjusting Entries: 02/29 02/29 wwC decides to use the aging method to estimate uncollectible accounts. WWC determines 6% of Record the $3,100 employee salary that is owed but will be paid March 1 the ending balance is the appropriate end of February estimate of uncollectible accounts. 02/29 Record February Interest expense accrued on the note payable. 02/29 Record one month's interest earned Kit Kat's note (see 02/01) References Date General Journal No Debit Credit Feb. 1 Notes Receivable 1,500 1.500 Accounts Receivable Feb. 2 Insurance Expense 2 Cash 15,000 Feb. 5 Inventory Accounts Payable 15,000 200 Feb. 6 Inventory Cash 4 Feb. 10a 28,050 Sales Revenue 28,050 12,650 Feb. 10b Cost of Goods Sold 12.650 Inventory 4,800 Feb. 15a Unearned Revenue 4,800 Sales Revenue 3,040 Feb. 15b Cost of Goods Sold ,040 Inventory 2,280 Feb. 15c Inventory 9 Feb. 150 Inventory 2,280 9 Cost of Goods Sold 2280 4,950 Feb. 15d Sales Returns and Allowance 0 Accounts Receivable 4,950 3,100 Wages Expense Feb. 16 3.100 Cash 15,000 12 Feb. 17 Accounts Payable Cash 14,700 Inventory ,450 13 Feb. 18 Allowance for Doubtful Accounts Accounts Receivable 1,450 Feb. 19a 2.200 Accounts Payable Rent Expense 2.200 Cash 4,400 15 Feb. 19b Cash 8,800 Sales Discounts Accounts Receivable 8,900 490 16 Feb. 26a Accounts Receivable 90 Allowance for Doubtful Accounts 490 Cash Feb. 26b 17 490 Accounts Receivable 400 Utility Expense Feb. 27 18 400 Accounts Payable 900 Dividends Declared Feb. 28 19 900 Cash 3,100 Wages Expense Feb. 29a 20 3,100 Wages Payable 1,581 Bad Debt Expense Feb. 29b 21 Allowance for Doubtful Accounts 145 Interest Expense Feb. 29c 45 Interest Payable 13 Interest Receivable Feb. 29d 23 13 Interest Revenue