Required information [The following information applies to the questions displayed below] Web Wizard, Incorporated, has provided information technology services for several yeats. For the first two months of the current year, the company has used the percentage of credit sales method to estimate bad debis. At the end of the first quartes, the company switched to the aging of accounts recelvable method. The company entered into the following partial list of transactions during the first quarter. a. During January, the company provided services for $47.000 on credit. b. On january 31, the compary estimated bad debts using 2 percent of credit sales. c. On February 4, the company collected $23,500 of accounts recelvable. a On February 15 , the company wrote off $150 account recelvable e. During February, the company provided services for $37,000 on credit. t. On February 28, the company estimated bad debts using 2 percent of credit sales. 9 On March 1, the company loaned $2,600 to an employee, who signed a 6% note, due in 6 months. 14 On March 15, the company collected $150 on the occount written off one month earlief 1 On March 31, the company accrued Interest eamed on the note. 1. On March 31, the company odjusted for uncolectible accounts, based on the following aging anolysis, which inctudes the preceding transactions (as well as others not isted). Priot to the adjustment Allowance for Doubtfut Accounts has on unsdjusted credit balance of $1,270 Reculied: 1. For hemsa folto (ii. analyze the wancaction to deterimine effects on specific financial ktatement accounts and the overoll accounting equition (Enter any dectesses to Assets, Llablitises, or Stockhoiders Equity with s minus slgn. Do not round intermedlate ceicutetions.) Required information [The following information applies to the questions displayed below] Web Wizard, Incorporated, has provided information technology services for several yeats. For the first two months of the current year, the company has used the percentage of credit sales method to estimate bad debis. At the end of the first quartes, the company switched to the aging of accounts recelvable method. The company entered into the following partial list of transactions during the first quarter. a. During January, the company provided services for $47.000 on credit. b. On january 31, the compary estimated bad debts using 2 percent of credit sales. c. On February 4, the company collected $23,500 of accounts recelvable. a On February 15 , the company wrote off $150 account recelvable e. During February, the company provided services for $37,000 on credit. t. On February 28, the company estimated bad debts using 2 percent of credit sales. 9 On March 1, the company loaned $2,600 to an employee, who signed a 6% note, due in 6 months. 14 On March 15, the company collected $150 on the occount written off one month earlief 1 On March 31, the company accrued Interest eamed on the note. 1. On March 31, the company odjusted for uncolectible accounts, based on the following aging anolysis, which inctudes the preceding transactions (as well as others not isted). Priot to the adjustment Allowance for Doubtfut Accounts has on unsdjusted credit balance of $1,270 Reculied: 1. For hemsa folto (ii. analyze the wancaction to deterimine effects on specific financial ktatement accounts and the overoll accounting equition (Enter any dectesses to Assets, Llablitises, or Stockhoiders Equity with s minus slgn. Do not round intermedlate ceicutetions.)
