Required information (The following information apples to the questions displayed below] Web Wizard. Incorporated, has provided information technology services for several years. For the fest 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 partialist of transections during the first quarter a During January, the company provided services for $35,000 on credit b. On January 31, the company estimated bad debts using 2 percent of credit sales c On February 4, the company collected $12,500 of accounts receivable d On February 15, the company wrote off $100 account receivable. e g. During February, the company provided services for $25,000 on credit On February 28, the company estimated bad debts using 2 percent of credit sales On March 1, the company loaned $3,000 to an employee, who signed a 6% note, due in 6 months h. On March 15, the company collected $100 on the account written off one month earlier On March 31, the company accrued interest earned on the note 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 hos an unadjusted credit balance of $150 Number of Days Ungate Customer Total to 51 to 60 61 to 90 Over 90 Alabama Touris 5300 5100 $ 80 5.20 Bayside Begalon Others (not shown to save space) 16,000 6,300 7,900 1,000 $350 800 Xciting Kursions, 400 400 Total Accounts Receivable $6,000 $7,900 Estimated Uncollectible (X) 15% $1,000 20% $1,150 Required: 1. For noms (a) to ( analyze the transaction to determine effects on specific financial statement accounts and the overall accounting equation (Enter any decreases to Assets, Liabilities, or Stockholders Equity with a minus sign. Do not round intermediate calculations) Assets Accounts Recervatic blowance for Doubl Accounts 35,000 050 Cash Arts Recevable 17,500 17.500 Accounts Receivable (100 d Allowance for Dout Accounts 100 eAccounts Recevable 25.000 Alowance for Doubtful Accounts Cash 700 9s Receivable (shon term h Accounts Receivable howance for Doubtful Accounts Cash h Accounts Receivable terest Receivable wance for Doubul Accounts Labilities . . Serece Revenue Bad Debt Expense Stockholders Ey Service Revenue ad Debs Exp Re ad Debt Expense Required information (The following information applies to the questions displayed below) 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 $35,000 on credit b c On January 31, the company estimated bad debts using 2 percent of credit sales On February 4, the company collected $17,500 of accounts receivable. d On February 15, the company wrote off $100 account receivable. e During February, the company provided services for $25,000 on credit g On February 28, the company estimated bad debts using 2 percent of credit sales. On March 1, the company loaned $3,000 to an employee, who signed a 6% note, due in 6 months. h On March 15, the company collected $100 on the account written off one month earlier On March 31, the company accrued interest earned on the note 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 has an unadjusted credit balance of $1150. Alabama Tourise Customer Bayside Bungalows Others (not shown to save space) Xciting Xcursions Total Accounts Receivable Estimated Uncollectible (3) Total $200 350 0 to 30 $ 100 Number of Days Unpaid 31 to 60 $80 61 to 90 $.20 Over 90 16,000 6,300 7,900 1,000 $350 800 400 400 $16,950 $ 6,800 5 7,980 $ 1,020 $1,150 3% 15% 20% 40%