! Required information [The following information applies to the questions displayed below.) Elite Events Corporation has provided event planning 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 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 $370,000 on credit. b. On January 31, the company estimated bad debts using 2 percent of credit sales. c. On February 4, the company collected $320,000 of accounts receivable. d. On February 15, the company wrote off a $3,700 account receivable. e. During February, the company provided services for $320,000 on credit f. On February 28, the company estimated bad debts using 2 percent of credit sales. g. On March 1, the company loaned $13,000 to an employee who signed a 6% note, due in 9 months. h. On March 15, the company collected $3,700 on the account written off one month earlier. 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 $9,700. Over 90 0-30 $ 1,100 Customer Aerosmith Biggie Small Others (not shown to save space) 22 Top Total Accounts Receivable Estimated uncollectible (*) Total $ 2,200 2,200 101,800 7,700 $ 113,900 Number of Days Unpaid 31-60 61-90 $ 1,100 $ 1,100 42,700 9,700 $ 1,100 9,700 39,700 7,700 $48,500 44 $ 43,800 15 $10,800 25% $10,800 30% Required: 1. For items (a)-0), analyze the amount and direction + or -) of effects on specific financial statement accounts and the overall accounting equation. (Do not round intermediate calculations. Enter any decreases to Assets, Liabilities, or Stockholders Equity with a minus sign.) Assets Liabilities Stockholders' Equity a b d e f g h h i Required information [The following information applies to the questions displayed below.) Elite Events Corporation has provided event planning 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 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 $370,000 on credit. b. On January 31, the company estimated bad debts using 2 percent of credit sales. c. On February 4, the company collected $320,000 of accounts receivable. d. On February 15, the company wrote off a $3,700 account receivable. e. During February, the company provided services for $320,000 on credit. f. On February 28, the company estimated bad debts using 2 percent of credit sales. g. On March 1, the company loaned $13,000 to an employee who signed a 6% note, due in 9 months. h. On March 15, the company collected $3,700 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 $9,700. Over 90 0-30 $ 1,100 Customer Aerosmith Biggie Small Others (not shown to save space) ZZ Top Total Accounts Receivable Estimated uncollectible (8) Total $ 2,200 2,200 101,800 7,700 $113,900 Number of Days Unpaid 31-60 61-90 $ $ 1,100 $ 1,100 42,700 9,700 $ 1,100 9,700 39,700 7,700 $48,500 4% $ 43,800 158 $10,800 258 $ 10,800 306 2. Prepare the journal entries for items (a)0). (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet Record service revenue of $370,000 sold on account during January Note: Enter debits before credits. Transaction General Journal Debit Credit a. Record entry Clear entry View general journal
