Required information (The following information applies to the questions displayed below.) h oo The company endete. At com 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 partial list of transactions during the first quarter A 3. During January, the company provided services for $37000 on credit. b. On January 31, the company estimated bad debts using 2 percent of credit sales c On February 4, the company collected $18,500 of accounts receivable d. On February 15, the company wrote off a $150 account receivable e During February, the company provided services for $27,000 on credit credit On February 28, the company estimated bad debts using 2 percent of credit sales g On March 1 the company loaned $2.600 to an employee, who signed a note due in months h On March 15, the company collected $150 on the account written of one month earlier On March 31, the company accrued interest eamed on the note 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 $117 on credit Y 15, the company collected sted debts using Totale-3031-60 230 tte $ 90 $ 61-90 Overse customer Alabama Touris Bayside Bungalows others (not shown to save space) Xciting Xcursions Total Accounts Receivable Estimated Uncollectible (X) 16,600 8 , 100 1.100 6,500 390 $7,000 517,590 $8,190 51.130 1.270 2. Prepare the journal enules for items (of no entry is required for a transactiondeventSelect No Journal Ency Required in the first account field. Do not round intermediate calculations.) View transaction fist View journal entry worksheet Journal entry worksheet Record the adjusting entry for bad debts as of January 31 using 2 percent of credit sales. Note: Enter debits before credits. Transaction Debit Credit General Journal Bad Debt Expense. Allowance for Doubtful Accounts Record entry Clear entry View general journal View transaction list Journal entry worksheet Record the interest accrued on the note as of March 31 Note: Enter debits before credits. Transaction Debit Credit General Journal Interest Receivable Interest Revenue Record entry Clear entry View general journal Total Accounts Receivable Estimated Uncollectible (5) $17,590 $5,000||$ 8,190 300 100 5 1,270 OS 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 (Do not round intermediate calculations.) WEB WIZARD, INC. Partial Balance Sheet At March 31 Assets HERE Current Assets Accounts Receivable Accounts Receivable. Not of Allowance2 6 Prey 5 of 7 8 Next >
