Required Information CP9-4 Accounting for Accounts and Notes Recevable 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 receivable method. The company entered into the following partial list of transactions. a During January, the company provided services for $360,000 on credit. b. On January 31, the company estimated bad debts using 1 percent of credit sales. c On February 4, the company collected $180,000 of accounts receivable. d. On February 15, the company wrote off a $500 account receivable. e. During February, the company provided services for $310,000 on credit. On February 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 12% note due in 3 months. h On March 15, the company collected $500 on the account written off one month earter. 1 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 $9.200. $ 2,200 . Customer Arrow Ergonomics Asymetry Architecture Others (not shown to save space) Weight Whittlers Total Accounts Receivable Estimated Uncollectible (2) Number + Days Ural 0-10 3 1-60 5 e 5 $3,000 41.520 55.00 6.6205 6 1.000 546.000 5550 710059200 lex zex 3.000 3110 100 CP3-4 Part 1 Required 1. For Items (all analyze the amount and direction for- of effects on specific finandal statement accounts and the overall accounting equation. TIP: In tem Ul you must first calculate the desired ending balance before adjusting the Allowance for Doubtful Accounts. Do not round Intermediate cakculations. Enter any decreases to Assets, Liabilities, or Stockholders Equity with a minus sign) set t es Stockholders Equity 3. Show how Accounts Recevable, Notes Receivable, and their related accounts would be reported in the current assets section of a classified balance sheet at the end of the quarter on March 31 EXECU SMART CONSULTANTS Balance Sheet (Partial) At March 31 Assets Current Assets Accounts Receivable, Net of Alowance Homework LORITURUNY 2A, URL TREILU URRURALARIUMIDORS 9. On March 1, the company loaned $17,000 to an employee, who signed a 12% note due in 3 months. h On March 15, the company collected $500 on the account written off one month earlier z On March 31, the company accrued Interest earned on the note. 1. 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 $9.200 Total $ 2,280 3,689 Customer Arrow Ergonomics Asymmetry Architecture Others (not shown to save space) Weight whittlers Total Accounts Receivable Estimated Uncollectible (x) Number of Days Unpaid 0-3031-6061-9eOver 90 9825 Bee S500 $3,600 41,5ee 5 5,680 6,600 5,600 3.600 $46,880 SSS, Bee $7,1ee59,20 10% 2014 188,789 3,600 $118,100 CP8.4 Part 4 4. Sales Revenue and Service Revenue are two Income statement accounts that relate to Accounts Recevable. Name two other accounts related to Accounts Receivable and Notes Receivable that would be reported on the income statement and Indicate whether each would appear before. or after, Income from Operations Execusmart Consultants would report: Income from Operations Income from Operations
