Required information [The following information applies to the questions displayed below.) Web Wizard, Incorporated, 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 partial list of transactions during the first quarter. a. During January, the company provided services for $49,000 on credit. b. On January 31, the company estimated bad debts using 2 percent of credit sales. c. On February 4, the company collected $24,500 of accounts receivable d. On February 15, the company wrote off $100 account receivable. e. During February, the company provided services for $39,000 on credit 1. On February 28, the company estimated bad debts using 2 percent of credit sales. g On March 1, the company loaned $3,000 to on employee, who signed a 6% note, due 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. . 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 has an unadjusted credit balance of $1.290. 0 to 30 $ 100 Number of Days Unpaid 31 to 60 61 to 90 $ 80 $ 20 Over 90 Customer Alabama Tourism Bayside Bungalows Others (not shown to save space) Xciting Xcursions Total Accounts Receivable Estimated Uncollectible (%) Total $ 200 490 18,800 400 $ 19,890 $ 490 800 9,300 1,000 7,700 400 $ 8,200 3% $ 9,380 15% $ 1,020 20% $ 1,290 38% 1. For items (a) to analyze the transaction to determine effects on specific financial statement accounts and the overall accounting equation (Enter any decreases to Assets, Liabilities, or Stockholders Equity with a minus sign. Do not round Intermediate calculations.) Stockholders' Equity Assets Answer is not complete Liabilities Service Revenue Alowance for Doubtful Accounts Accounts Receivable a Accounts Receivable Bad Debt Expense 49.000 3 3003 24.500 OOO Cash 0 Accounts Receivable o d Allowance for Doubtful Accounts . OO Accounts Receivati Bad Debt Expense Notes Receivable long term OOO Service Revenue Alowance for Doubtful Accounts Cash . Allowance for Doubtful Account Accounts Receive Accounts Receivable Cash OO - . - : revenue Allowance for Doubtful Accou Interest Receivable Bad Debt Expense Oo . O 1 2. Prepare the journal entries for items (a) to (1). (If no entry is required for a transaction/event, select "No Journal Ent the first account field. Do not round intermediate calculations.) View transaction list Journal entry worksheet
