PB8-4 Accounting for Accounts and Notes Receivable Transactions [LO 8-2, LO 8-3] Elite Events Corporation has provided event planning services for severol years. The compeny uses the percentage of credit soles method to estimate bad cebts for internal monthly reporting purposes. At the end of each quarter, the compony adjusts its records using the oging of accounts receivable method. The company entered into the following partia list of tronsections during the first quarter a. During Jonuary, the company provided services for $280,000 on crecit. b. On Jonuary 31, the compony estimated bad debts using 1 percent of credit soles. c. On February 4, the company collected $230,000 of accounts receivable d. On February 15, the company wrote off a $2,800 account receivable e. During February, the company provided services for $230,000 on credit. f. On Februory 28, the company estimated bad debts using 1 percent of credit sales. g. On March 1, the company loaned $17,000 to an employee who signed a 6% note, due in 9 months. h. On March 15, the company collected $2,800 on the account written off one month eorlier. i. On March 31, the company accrued interest earned on the note j. On March 31, the company odjusted for uncollectible occounts, bosed on the following aging analysis. Allowance for Doubtful Accounts has an unadjusted credit balance of $8,800. Number of Days Unpoid 0-30 5 2,000 $ 1,000 S 1,000 Customer Total 31-60 61-90 Over 90 Aerosmith Biggie Small Others (not shown to save space ZZ Top 2,000 S 1,000 1,000 98.200 38,800 41800 8,800 8,800 6,800 6,800 Total Accounts Receiveble Estimated uncollectible (96) $109,000 $46,600 $42,800 10% 9,800 20% 9,800 40% 5%