Required information (The following information applies to the questions displayed below) Execusmart Consultants has provided business consulting 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 this year to the aging of accounts receivable method. The company entered into the following partial list of transactions a During January, the company provided services for $290,000 on credit b. On January 31, the company estimated bad debts using 1 percent of credit sales, c On February 4, the company collected $145,000 of accounts receivable. d. On February 15, the company wrote off a $600 account receivable e. During February, the company provided services for $240.000 on credit. On February 28, the company estimated bad debts using 1 percent of credit sales. g. On March 1, the company loaned $12,000 to an employee, who signed a 11% note due in 3 months h. On March 15, the company collected $600 on the account written off one month earlier Z. 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 hoc en unadjusted crdit balance of $7,800, e-3e I Customer Arrow Ergonomics Asymmetry Architecture others (not shown to save space) Weight whittlers Total Accounts Receivable imated uncollectible (*) Total $ 1,980 2, 9ee 95, 10e 2.9ee $182,800 Nunber of Days unpaid 31-60 61-90 Over 90 $ 800 $ 700 $ 400 $ 2,900 36, 380 48,000 5,900 4,9ee 2,900 S40, eee $48, 7ee $ 6,300 $ 7,800 3% 20% 30% 40x BN $70 $ 400 cuitor Arrow trgonetes Asymetry Architecture Others (not shown to save space) weight Whittiers Total Accounts Receivable Estimated Uncollectible (1) Total $1,900 2,100 95,100 2.900 $102,800 48.000 5,500 $2.50 4,00 36,100 2.ee 140,000 32 340,700 205 16,300 10 57,400 40 Required: 1. For items (al-analyze the amount and direction for -) of effects on specific financial statement accounts and the overall accounting equation. TIP In Item you must first calculate the desired ending balance before adjusting the Allowance for Doubtful Accounts. (Do not round intermediate calculations. Enter any decreases to Assets, Liabilities, or Stockholders Equity with e minus sign.) e Estimated Uncollectible (%) $102,800 548,899 3% $48,7ee 2ex 3. Show how Accounts Receivable, Notes Receivable, and their related accounts would classified balance sheet at the end of the quarter on March 31. EXECU SMART CONSULTANTS Balance Sheet (Partial) At March 31 Assets Current Assets Accounts Receivable, Net of Allowance written of one month earlier On March 31, the company accrued interest eamed on the note. V 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 $7800 customer Arrow Ergonomics Asymmetry Architecture others (not shown to save space) weight whittlers Total Accounts Receivable Estimated Uncollectible (%) Total $ 1,9ee 2,900 95,1ee 2,9ee 51e2, see Number of Days unpaid 0-30 31-60 61-90 Over 90 $ 800 $ 7ee $ 40e $ 2,990 36, 360 48, eee 5,980 4,900 2.900 $40, eee 3% $48, 700 2ex 55,3ee 3ex $ 7,300 40% 4. Sales Revenue and Service Revenue are two income statement accounts that relate to Accounts Receivable. Name two other accounts related to Accounts Receivable and Notes Receivable that would be reported on the income statement and indicate whether each would appear before or after, Income from Operations Execusmart Consultants would report Income from Operations Income from Operations 26