Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Required information (The following information applies to the questions displayed below.) Web Wizard, Inc., has provided information technology services for several years. For the first

image text in transcribed
image text in transcribed
Required information (The following information applies to the questions displayed below.) 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. During January, the company provided services for $43,000 on credit b. On January 31, the company estimated bad debts using 2 percent of credit sales. c. On February 4, the company collected $21,500 of accounts receivable. d. On February 15, the company wrote off a $100 account receivable. e. During February, the company prov[ded services for $33,000 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 an employee, who signed a 6% note, due in 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 an aging analysis (below). Allowance for Doubtful Accounts has an unadjusted credit balance of $1,230. $ Customer Alabama Tourism Bayside Bungalows Others (not shown to save space) Xciting Xcursions Total Accounts Receivable Estimated Uncollectible ($) Total $ 200 430 17,600 400 $18,630 Number of Days Unpaid 0-30 31-60 61-90 Over 90 $ 100 80 $ 20 $ 430 7,100 8,700 1,000 800 400 $7,600 $8,780 $1,020 $1,230 38 158 208 300 mework Saved Help Save & Exit Subm Check my work Required: 1. For Items (a), 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.) Assets Liabilities Stockholders' Equity a b d. f 9 h.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Craft Of Auditing For Accounting Undergraduates

Authors: Eldar Maksymov

1st Edition

1516589890, 9781516589890

More Books

Students also viewed these Accounting questions