Required information The following information applies to the questions displayed below.) Web Wizard, Incorporated, 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 $100 account receivable. e. During February, the company provided services for $33,000 on credit. On February 28, the company estimated bad debts using 2 percent of credit sales. 9. On March 1, the company loaned $3,000 to an employee, who signed a 6% note, due in 6 months. h. On March the company collected $100 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 the following aging analysis, which includes the preceding transactions as well as others not listed). Prior to the adjustment, Allowance for Doubtful Accounts has an unadjusted credit balance of $1.230. Number of Days Unpaid 31 to 60 61 to 90 $ 80 $20 Total $ 200 438 17,600 4ee $ 18,630 Customer Alabana Tourism Bayside Bungalows Others (not shown to save space) Xciting Xcursions Total Accounts Receivable Estimated Uncollectible (5) @ to 30 $ 1ee 7,100 400 $ 7.600 35 Over 90 $430 800 1.000 8,700 $ 8,780 155 $1,020 200 $ 1,230 38 Required: 1. For items (a) to 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.) Liabities Stockholders Equity Service Revenu Wad Debt Experie 43,000 430 Assets Accounts Receivable b. Allowance for Doubtful Accounts Cath Accounts Receivable d. Accounts Receivable d. Allowance for Doubtful Accounts e Accounts Receivable Allowance for Doubtful Accounts + 43.000 430 21.500 (21,500) 1001 - 100 33.000 1660) (21.500) 21.500 1001 - (100) 100- 100 . + Service Revenue Had Debt Expense 33.000 156 Cash Notes Receivable long-term) Accounts Receivable Allowance for Doubtful Account h Cash Accounts Receivable 3 2. Prepare the journal entries for items (a) to 6 (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 lit X 1 Record service revenue of $43,000 sold on account during January 2 Record the adjusting entry for bad debts as of January 31 using 2 percent of credit sales Record the collection of $21,500 of outstanding accounts receivables on February 4. Credit 4 Record the write-off of a $100 account receivable on February 15 5 Record service revenue of $33,000 provided on account during February 6 Record the adjusting entry for bad debts as of February Note: - Journal entry has been entered Record entry Clear entry View general Journal 3 MC AN (Graw MacBook 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.) 2 WEB WIZARD, INCORPORATED Partial Balance Sheet At March 31 Assets Current Assets Accounts Receivable $ 18,630 Allowance for Doubtful Accounts Accounts Receivable, Net of Allowance Notes Receivable long-term) Interest Receivable