Part 1 of 4 Required information The following information applies to the questions displayed below.) 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 parti/ist of transactions during the first quarter. 25 points eBook a. During January, the company provided services for $36,000 on credit b. On January 31, the company estimated bad debts using 1 percent of credit sales. c. On February 4, the company collected $18,000 of accounts receivable. d. On February 15, the company wrote off a $200 account receivable, e. During February, the company provided services for $26,000 on credit On February 28, the company estimated bad debts using 1 percent of credit sales. 9. 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. 1. On March 31, the company accrued interest earned on the note. / 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 $1160 Customer Alabama Tourism Bayside Bungalows Others (not shown to save space) Xciting Xcursions Total Accounts Receivable El Total $ 200 360 16,300 380 5171210 Number of Days Unpaid 31-60 61-90 over 90 $ 120 5 7010 5 360 6,400 8,900 1,200 700 380 $6,900 $8,070 $1,210 $1,060 Required: 1. For items al-analyze the transaction to determine effects on specific financial statement accounts and the overall accounting equation (Enter any decreases to Assets, Liabilities, or Stockholders Equity with a minus sign. Do not round Intermediate calculations.) Assets Labilities Stockholders Equity b. 2301 Test.docx d 0 Check my work [The following information applies to the questions displayed below.) 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 $36,000 on credit 6. On January 31, the company estimated bad debts using 1 percent of credit sales. c On February 4, the company collected $18,000 of accounts receivable. d On February 15, the company wrote off a $200 account receivable. e During February, the company provided services for $26,000 on credit. f. On February 28, the company estimated bad debts using 1 percent of credit sales. 9. 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. 1. 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 $1,160 Customer Alabama Tourism Bayside Bungalows others (not shown to save space) Xciting Xcursions Total Accounts Receivable Estimated Uncollectible (4) Total 5 200 360 16,300 380 $17,240 Number of Days Unpaid 0-30 31-60 61-90 Over 90 $ 128 $ 70 $ 10 $360 6.400 8,000 1,200 7ea 380 56,900 $8,070 $1,210 $1,960 24 109 24 354
