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 $33,000 on credit. b. On January 31, the company estimated bad debts using 2 percent of credit sales. c. On February 4, the company collected $16,500 of accounts receivable. d. On February 15, the company wrote off a $200 account receivable. e. During February, the company provided services for $23,000 on credit. f. On February 28, the company estimated bad debts using 2 percent of credit sales. g. On March 1, the company loaned $2,000 to an employee, who signed a 6% note, due in 6 months. h. On March 15, the company collected $200 on the account written off one month earlier. 1. On March 31, the company accrued interest earned on the note. j. 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 $1,130. Customer Alabama Tourism Bayside Bungalows Others (not shown to save space) Xciting Xcursions Total Accounts Receivable Estimated Uncollectible (8) Total $ 200 330 15,700 380 $ 16,610 Number of Days Unpaid 0-30 31-60 61-90 Over 90 $ 120 $ 70 $ 10 $ 330 6,100 7,700 1,200 700 380 $6,600 $ 7,770 $1,210 $1,030 3% 10% 20% 40% Required: Required: 1. For items (a)-0), 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 2. Prepare the journal entries for items (a)-0). (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Do not round intermediate calculations.) View transaction list 111 1 Record service revenue of $33,000 sold on account during January. 2 Record the adjusting entry for bad debts as of January 31 using 2 percent of credit sales. 3 Record the collection of $16,500 of outstanding accounts receivables on February 4. Credit 4 Record the write-off of a $200 account receivable on February 15. 5 Record service revenue of $23,000 provided on account during February. 2. Prepare the journal entries for items (a)-0). (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Do not round intermediate calculations.) View transaction list 6 11 Record the adjusting entry for bad debts as of February 28 using 2 percent of credit sales. 7 Record the receipt of a note on March 1 for a $2,000 loan to an employee. 8 Record the reversal of a $200 account receivable previously written off one month earlier. Credit 9 Record the receipt of cash of $200 from the customer. 10 Record the interest accrued on the note as of March 31. 11 Record the adjusting entry for bad debts as of March 31 using the aging of accounts receivable method. Note : = journal entry has been entered Record entry Clear entry View general journal 3. 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 Current Assets: Accounts Receivable, Net of Allowance 4. Sales Revenue and Service Revenue are two income statement accounts that relate to Accounts Receivable. Name two other accounts related to Accounts Receivable and Notes Receivable that would be reported on the income statement and indicate whether each would appear before, or after, Income from Operations. Web Wizard would report Income from Operations. Income from Operations