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 $290,000 on credit. b. On January 31, the company estimated bad debts using 1 percent of credit sales. c. On February 4, the company collected $145,000 of accounts receivable. d. On February 15, the company wrote off a $600 account receivable. e. During February, the company provided services for $240,000 on credit. f. On February 28, the company estimated bad debts using 1 percent of credit sales. g. On March 1, the company loaned $12,000 to an employee, who signed a 11% note due in 3 months. h. On March 15, the company collected $600 on the account written off one month earlier. i. 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 $7,800. Customer Arrow Ergonomics Asymmetry Architecture Others (not shown to save space) Weight Whittlers Total Accounts Receivable Estimated Uncollectible (%) Total $ 1,900 2,900 95,100 2,900 $102,800 Number of Days Unpaid 0-30 31-60 61-90 Over 90 $ 800 $ 700 $ 400 $2,900 36,300 48,000 5,900 4,900 2,900 $40,000 $48,700 $6,300 $7,800 3% 20% 30% 40% 2. Prepare the journal entries for items (a)-(i). (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Do not round intermediate calculations.) Journal entry worksheet Record the collection of $145,000 of outstanding accounts receivable on February 4. Note: Enter debits before credits. Transaction General Journal Debit Credit Journal entry worksheet Record the write-off of $600 accounts receivable on February 15. Note: Enter debits before credits. Transaction General Journal Debit Credit Journal entry worksheet Record service revenue of $240,000 sold on account during February. Note: Enter debits before credits. Transaction General Journal Debit Credit e. Journal entry worksheet Record the adjusting entry for bad debts as of February 28 using 1 percent of credit sales method. Note: Enter debits before credits. Transaction General Journal Debit Credit Journal entry worksheet
