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 $320,000 on credit. b. On January 31, the company estimated bad debts using 1 percent of credit sales. On February 4, the company collected $160,000 of accounts receivable, d. On February 15, the company wrote off $750 account receivable. e. During February, the company provided services for $270,000 on credit. On February 28, the company estimated bad debts using 1 percent of credit sales. 9. On March 1, the company loaned $16,000 to an employee, who signed a 9% note due in 3 months h. On March 15, the company collected $750 on the account written off one month earlier 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 $8.400 0 to 20 5500 Number of Days Unpaid 31 to 60 61 to 90 $ 400 $ 100 Over 30 Customer Arrow Ergononcen Asymetry Architecture Others (not shown to save space) Weight Whittlers Total Accounts Receivable Estimated Uncollectible (1) Total $1,000 3,200 100,900 3,200 1 108, 100 51,000 6.200 $ 3,200 9.200 38,300 3200 $ 42,000 20 5.51,400 200 $ 6.300 300 $ 8,400 400 Required: 1. For Items (a) to analyze the amount and direction (+ or -) of effects on specific financial statement accounts and the overall accounting equation. TIP: In Item Ul 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 a minus sign.) Assets Liabilities Stockholders' Equity oo d 1 9 1 Record service revenue of $320,000 sold on account during January 2 Record the adjusting entry for bad debts as of January 31, using 1 percent of credit sales method. 3 Record the collection of $160,000 of outstanding accounts receivable on February 4. 4 Record the write-off of $750 accounts receivable on February 15. 5 Record service revenue of $270,000 sold on account during February Note : journal entry has been entered X 6 Record the adjusting entry for bad debts as of February 28 using 1 percent of credit sales method. 7 Record the receipt of a note on March 1 for a $16,000 loan to an employee. 8 Record the reversal of the $750 accounts receivable balance previously written off on February 15. 9 Record the receipt of cash of $750 from the customer. 10 Record the interest accrued on the note as of March 31. 11 Record the adjusting entry for bad debts as of March 31, using the aging of accounts receivable method. Note : journal entry has been entered EXECUSMART CONSULTANTS Balance Sheet (Partial) At March 31 Assets Current Assets Accounts Receivable, Net of Allowance Execusmart Consultants would report: Income from Operations. Income from Operations