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Please help ! Execusmart Consultants has provided business consulting services for several years. The company has been using the percentage of credit sales method to
Please help !
Execusmart Consultants has provided business consulting services for several years. The company has been using the percentage of credit sales method to estimate bad debts but switched at the end of the first quarter this year to the aging of accounts receivable method. The company entered into the following partial list of transactions. a. During January, the company provided services for $370,000 on credit. b. On January 31, the company estimated bad debts using 1 percent of credit sales. c. On February 4, the company collected $185,000 of accounts receivable. d. On February 15, the company wrote off $550 account receivable. e. During February, the company provided services for $320,000 on credit. f. On February 28, the company estimated bad debts using 1 percent of credit sales. g. On March 1, the company loaned $18,000 to an employee, who signed a 9% note due in 3 months. h. On March 15, the company collected $550 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, which includes the preceding transactions (as well as others not listed). Prior to the adjustment, Allowance for Doubtful Accounts had an unadjusted credit balance of $9,400. Customer 0 to 30 Arrow Ergonomics Total $ 800 $ 300 Asymmetry Architecture 3,700 Others (not shown to save space) 110,400 42,000 Weight Whittlers 3,700 3,700 Total Accounts Receivable $ 118,600 $ 46,000 Estimated Uncollectible (8) 4% Number of Day 31 to 60 $ 200 56,000 $ 56,200 15% Prepare the journal entries for items (a) to (j). (If no entry is required for a transaction/event, select "No Jor Required" in the first account field. Do not round intermediate calculations.) View transaction list View journal entry worksheet No General Journal Debit Credit 1 Accounts Receivable Service Revenue 2 Bad Debt Expense Allowance for Doubtful Accounts 3 Cash Accounts Receivable 4 Allowance for Doubtful Accounts Accounts Receivable 5 J Transaction b. C. d. e. Accounts Receivable Service Revenue 370,000 3,700 185,000 550 320,000 370,000 3,700 185,000 550 320,000 5 6 7 8 9 10 11 e. 9. h(1). h(2). i. j. Accounts Receivable Service Revenue Bad Debt Expense Allowance for Doubtful Accounts Notes Receivable (short-term) Cash Accounts Receivable Allowance for Doubtful Accounts Cash Accounts Receivable Interest Receivable Interest Revenue Bad Debt Expense Allowance for Doubtful Accounts 320,000 3,200 18,000 550 550 135 320,000 3,200 18,000 550 550 135 Step by Step Solution
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