Required information [The following information applies to the questions displayed below.) Web Wizard, Inc., 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 partia/list of transactions during the first quarter. a. During January, the company provided services for $40,000 on credit. b. On January 31, the company estimated bad debts using 1 percent of credit sales. c On February 4, the company collected $20.000 of accounts receivable. d. On February 15, the company wrote off a $100 account receivable. e During February, the company provided services for $30,000 on credit 1 On February 28, the company estimated bad debts using 1 percent of credit sales g. On March 1, the company loaned $2,400 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. 1. On March 31, the company accrued interest earned on the note J. On March 31, the company adjusted for uncollectible accounts, based on an aging analysis (below). Allowance for Doubtful Accounts has an unadjusted credit balance of $1200. Number of Days Unpad 0-30 5 100 Customer Alabama Tourism Bayside Bungalows Others (not shown to save space) Xciting Xcursions Total Accounts Receivable Estimated Uncollectible (%) Total $ 200 400 17,000 400 $18,000 Number of Days Unpaid 31-60 61-90 Over 90 $ BO $ 20 $ 400 8,400 1,000 800 6,800 400 $ 7,300 2% $ 8,480 18% $1,020 28% $1,200 ex 2. Prepare the journal entries for items (a)-() (If no entry is required for a transaction/event, select "No Journal Entry Required" the first account field. Do not round intermediate calculations. View transaction list Journal entry worksheet Journal entry worksheet Record the adjusting entry for bad debts as of January 31 using 1 percent of credit sales. Note: Enter debits before credits. General Journal Debit Credit Transaction b. Coronto Polonter Journal entry worksheet Record the collection of $20,000 of outstanding accounts receivables on February 4. Note: Enter debits before credits. Transaction General Joumal Debit Credit C. Domy CI. WEGOCIenal Journal entry worksheet S 7 of 8 Next Journal entry worksheet Journal entry worksheet 2 3 5 5 on 2 8 ... 11 > Record the receipt of a note on March 1 for a $2,400 loan to an employee. Note: Enter debits before credits Transaction General Journal Debit Credit 9 Record entry Clear entry View general journal Journal entry worksheet
