Required information CP8-4 (Algo) Accounting for Accounts and Notes Receivable Transactions [LO 8-2, LO 8-3] [The following information applies to the questions displayed below.] 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 recelvable 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. 1. On February 28, the company estimated bad debts using 1 percent of credit sales. 9. 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. 1. On March 31, the company accrued interest earned on the note. 5. On March 31, the company adjusted for uncollectible accounts, based on the following aging analysis, which inciudes 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. 1 Record service revenue of $370,000 sold on account during lanuary. 2 Record the adjusting entry for bad debts as of January 31 , using 1 percefin of credit sales method. 3 Record the collection of $185,000 of outstanding accounts receivable on February 4. 4. Record the write-off of $550 accounts recelvable on February 15. 5 Record service revenue of $320,000 sold on account during February. Note : P= journal entry has been entered 6 Record the adjusting entry for bad debts as of February 28 using 1 percent of credit sales method. 7 Record the receipt of a note on March 1 for a $18,000 loan to an employee. B Record the reversal of the $550 accounts recelvable balance previously written gif on February 15. 9 Record the receipt of cash of $550 from the customer. 10 Record the interest accrued on the note as of March 31. 11 Record the adjusting entry for bad debts as of March 31, using the aging of accounts receivable method. Note : O = journal entry has been entered 3. Show how Accounts Recelvable, Notes Recelvable, and their related accounts would be reported in the current assets section of a ciassified balance sheet at the end of the quarter on March 31. 4. Sales Revenue and Service Revenue are two income statement accounts that relate to Accounts Recoivable. Name two other accounts related to Accounts Recelvable and Notes Recelvable that would be reported on the income statement and indicate whether each would appear before, or after, income from Operations for Execusmart Consultants