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! Required information PA 8 - 4 ( Algo ) Accounting for Accounts and Notes Receivable Transactions [ LO 8 - 2 , LO 8
Required information
PAAlgo Accounting for Accounts and Notes Receivable Transactions LO LO
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Web Wizard, Incorporated, has provided information technology services for several years. For the first two months of the current year, the company has used the percentage of credit sales method to estimate bad debts. At the end of the first quarter, the company switched to 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 $ on credit.
b On January the company estimated bad debts using percent of credit sales.
c On February the company collected $ of accounts receivable.
d On February the company wrote off $ account receivable.
e During February, the company provided services for $ on credit.
f On February the company estimated bad debts using percent of credit sales.
On March the company loaned $ to an employee, who signed a note, due in months.
h On March the company collected $ on the account written off one month earlier.
i On March the company accrued interest earned on the note.
j On March 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 has an unadjusted credit balance of $
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