PA8-4 Accounting for Accounts and Notes Receivable Transactions [LO 8-2, LO 8-3] IThe following information applies to the questions displayed below Web Wizard, Inc. has pravided information technology services for several years. The company uses the percentage of creait sales method to estimate bad debts for intermal monthly reporting purposes At the end of each quarter the company aajusts its recoras using the aging of accounts receivable method. The company entered Into the following parnal list of transactions during the first quarter a During anuary, ne compaty provice services for $40ooDion crea b. On January 31 the company estimated bad debts using percent of credit sales ci: On February 4 the company collected $2D.0OD of accounts recevable d. On Februery 15,the company wrote off e stoo eccount receiveble e. During February the company providedservices for $30.000 on creait. C On Feoruary 28, the company estimated bad debts using percent of credit sales g. On March, the company loaned S2.400 to an employee who signed a 6% note, due in 6 months. on March 15, the company collected S100 on the account written off ane month earlier. On March 31 tne company accrued interest earned of the note. On March 31a me company adjustec for uncollectible accounts, based on an aging analysis (below. Allowance for Doubtfl Accounts has an unadjusted credit balance of $1,200 Number of Days Unpaid Customer Tota-30 3-60 6-9d Over 90 S 200 S o030 S 20 Alabama Tourism Bayside Bungalows Others not shown to save spacel 7000 6,8008400 1006800 Xcting Xoursions 400 s 400 400400 Total Accounts Recevable Estimated uncollectible $18,000 $7300 SB.480 $1.020 St 200 2% 10% 20% 40%