PB8-4 Accounting for Accounts and Notes Receivable Transactions [LO 8-2, LO 8-3 Elite Events Corporation has provided event planning services for several years. The company uses the percentage of credit sales method to estimate bad debts for internal monthly reporting purposes. At the end of each quarter, the company adjusts its records using the aging of accounts recelvable method. The company entered into the following partial list of transactions during the first quarter. a. During January, the company provided services for $390,000 on credit b. On January 31, the company estimated bad debts using 2 percent of credit sales. c. On February 4, the company collected $340,000 of accounts recelvable. d. On February 15, the company wrote off a $3,900 account receivable. e. During February, the company provided services for $340,000 on credit f. On February 28, the company estimated bad debts using 2 percent of credit sales. g. On March 1, the company loaned $11,000 to an employee who signed a 6% note, due in 9 months. h. On March 15, the company collected $3,900 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 the following aging analysis. Allowance for Doubtful Accounts has an unadjusted credit balance of $9,900. Number of Unpaid Customer Total 31-60 0-30 $ 2,000 1,000 $1,000 Biggie Small Others (not shown to save space) zZ Top 2,000 102,600 7,900 61-90 Over 90 $ 1,000 $ 1,000 9,900 9,900 42,900 39,900 7,900 290 2900 Total Accounts Receivable Estimated uncollectible (%) 114,500 $48,800 $43,900 $10,900 $10,900 40% 5% 15% 25%