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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

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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 $44,000 on credit b. On January 31, the company estimated bad debts using 1 percent of credit sales. c On February 4, the company collected $22,000 of accounts receivable. d On February 15, the company wrote off a $150 account receivable. e. During February, the company provided services for $34,000 on credit f On February 28, the company estimated bad debts using 1 percent of credit sales. g On March 1, the company loaned $2,200 to an employee, who signed a 6% note, due in 6 months. h. On March 15, the company collected $150 on the account written off one month earlier 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 $1,240. Number of Days Unpaid Custoner Total 0-30 31-60 61-90 Over 90 $ 230 110 90 30 Alabama Tourisn Bayside Bungalows Others (not shown to save space) Xciting Xcursions $ 440 900 440 18,000 7,200 8,800 1,100 390 390 $19,060 $7,700 $8,890 $1,130 $1,340 Total Accounts Receivable Estinated Uncollectible () 21 10 20% 301 Required: 1 For items (a-UB analyze the transaction to determine effects on specific fnancial 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.) A stats Liabilitles Stockholders Equity

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