Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please answer this 4 step question given the information below. Please put answers in boxes or in a structured format that would allow me to

Please answer this 4 step question given the information below. Please put answers in boxes or in a structured format that would allow me to find exactly where each answer is so that I can check my work. Thank you so much.

Web Wizard, Inc. has provided information technology 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 receivable method. The company entered into the following partial list of transactions during the first quarter.

image text in transcribed

image text in transcribed

image text in transcribed

image text in transcribed

IThe following information applies to the questions displayed below. Web Wizard, Inc. has provided information technology 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 receivable method. The company entered into the following partial 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. f 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. i. 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 $1.130. Number of Days Unpaid 0-30 31-60 61-90 Over 90 Customer Total 200 120 70 10 Alabama Tourism 330 Bayside Bungalows 330 Others (not shown to save space) 15,700 6100 7700 1,200 700 Xciting Xcursions 380 380 16,610 $6,600 7,770 1,210 $1,030 Total Accounts Receivable Estimated uncollectible 39% 10% 20% 40%

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_2

Step: 3

blur-text-image_3

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

International Accounting

Authors: Frederick D. Choi, Gary K. Meek

7th Edition

978-0136111474, 0136111475

More Books

Students also viewed these Accounting questions

Question

Explain the characteristics of a high-performing system. LO9

Answered: 1 week ago

Question

Assess various approaches to understanding performance at work

Answered: 1 week ago

Question

Provide a model of performance management

Answered: 1 week ago