Required information The following information applies to the questions displayed below! Erecumart Consultants as provided business Consulting services for several years. The company has been using the percentage of credit sales method to estimate bad debts but wnched 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 $370.000 on credit On January 31, the company estimated bad debts using percent of credit sales con February 4, the company collected $185.000 of accounts receivable d on February 15, the company wrote of a $550 account receivable e During February, the company provided services for $320.000 on Credit On February 28, the company estimated bad debts using percent of credit sales 9. On March the company loaned $18,000 to an employee, who signed a 9 note due in 3 months h. On March 15, the company collected $550 on the account written off one month earlier On March 31, me company accrued interesteamed on the note 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 fy Doubtful Accounts had anunausted credit balance of $9.400 Total 5 3.700 110,00 3 Erro trgola Astry Architecture Others (not the space) witter Total Accounts Receivable Etted collectible Dagtid 316 $ $ 3,700 36.00 5.70 42.00 $112.60 14.00 $56.700 39. Required: 1. For items()- 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.) Astes a b. d h 2. Prepare the journal entries for items (a)-0). (If no entry is required for a transaction/e the first account field. Do not round intermediate calculations.) View transaction list EX: 11 1 Record service revenue of $370,000 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 $185,000 of outstanding accounts receivable on February 4. Credit 4 Record the write-off of $550 accounts receivable on February 15. 5 Record service revenue of $320,000 sold on account during February Note: = journal entry has been entered Record entry Clear entry View general journal 4% 15% 256 Estimated Uncollectible (%) 2. Prepare the journal entries for items (a)-c) (if no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Do not round intermediate calculations.) View transaction list X 11 5 Record the adjusting entry for bad debts as of February 28 using 1 percent of credit sales method 7 Record the receipt of andy on March 1 for a $18,000 loan to an employee Record the reversal of the $550 accounts receivable balance previously written off on February 15, Record the receipt of cash of $550 from the customer 10 Record the interest accrued on the note as of March 31. 11 Record the adjusting entry for trad debts as of March 31, using the aging of accounts receivable method Note Journal entry has been entered Record entry Clear entry View general journal $6,000 6,700 5,700 Weight Whittlers Total Accounts Receivable Estimated Uncollectible (5) 110,400 3,700 $118,600 42,000 3,700 546.ece 4% $56,200 15% $ 7,000 25% $ 9,400 45% 3. Show how Accounts Receivable. Notes Receivable, and their related accounts would be reported in the current assets section of a classified balance sheet at the end of the quarter on March 31, EXECUSMART CONSULTANTS Balance Sheet (Partial) Al March 31 Assets ) Current Assets Accounts Receivable, Net of Allowance e During February, the company provided services for $320,000 on credit. f On February 28, the company estimated bad debts using 1 percent of credit sales. g. On March 1, the company loaned $18,000 to an employee, who signed a 9% note due in 3 months h On March 15, the company collected $550 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 $9.400 Customer Arrow Ergonomics Asymmetry Architecture Others (not shown to save space) Weight Whittlers Total Accounts Receivable Estimated Uncollectible (*) Total $ 800 3,700 110,400 3.700 $118,600 Number of Days Unpaid 0-30 31-60 61-90 Over 90 $ 300 $ 200 $ 300 $ 3,700 42,000 56,000 6,700 5,700 3,700 $46,000 $56,200 57,000 $ 9,400 4% 15% 25% 45% 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