Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

ork Assignment 6 Saved Web Wizard, Inc., has provided information technology services for several years. For the first two months of the current year, the

image text in transcribed
image text in transcribed
image text in transcribed
ork Assignment 6 Saved 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 partia/ list of transactions during the first quarter. a. During January, the company provided services for $33,000 on credit b. On January 31, the company estimated bad debts using 2 percent of credit sales. c On February 4, the company collected $16.500 of accounts receivable. d. On February 15, the company wrote off a $200 account receivable. e. During February, the company provided services for $23.000 on credit. On February 28, the company estimated bad debts using 2 percent of credit sales. g. On March 1, the company loaned $2,000 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. 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 $1130. 0-30 $ 120 Customer Alabama Tourism Bayside Bungalows Others (not shown to save space) Xciting xcursions Total Accounts Receivable Estimated Uncollectible (5) Total $ 288 338 15,7ee 380 $16.610 Number of Days Unpaid 31-68 61-90 Over 90 5 70 $ 10 330 7.700 1,200 780 6.100 380 $ 5,600 5.7778 $1,210 202 $1,30 20% repare the journal entries for items (8)-() (If no entry is required for a transaction event, select "No Journal Entry Required" In he first account field. Do not round Intermediate calculations.) Required information View transaction list X 1 Record service revenue of $33,000 sold on account during January. 2 Record the adjusting entry for bad debts as of January 31 using 2 percent of credit sales. 3 Record the collection of $16.500 of outstanding accounts receivables on February 4. Record the write-off of a $200 account receivable on February 15. 5 Record service revenue of $23,000 provided on account during February. 6 Record the adjusting entry for bad debts as of February = journal entry has been entered Note: Record entry Clear entry Required information View transaction list 6 Record the adjusting entry for bad debts as of February 28 using 2 percent of credit sales. 7 Record the receipt of a note on March 1 for a $2,000 loan to an employee. 8 Record the reversal of a $200 account receivable previously written off one month earlier. 9 Record the receipt of cash of 5200 from the customer. 10 Record the interest accrued on the note as of March 31. 11 Record the adjusting entry for bad debts as of March 31 using the aging of accounts receivable method. Note = journal entry has been entered Record entry Clearly

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting And Money For Ministerial Leadership Key Practical And Theological Insights

Authors: Nimi Wariboko

1st Edition

1625640129, 9781625640123

More Books

Students also viewed these Accounting questions

Question

=+d. Purchaser: buys the item.

Answered: 1 week ago