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 first quarter.
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.
5. For items (a) to (j), analyze the amount and direction (+ or ) of effects on specific financial statement accounts and the overall accounting equation. (Do not round intermediate calculations. Enter any decreases to Assets, Liabilities, or Stockholders Equity with a minus sign.)
6. Prepare the journal entries for items (a) to (j). (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
7. 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 first quarter.
8. 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.

9. Prepare the adjusting journal entry required for the year. Assume Chipman uses ¹/₄ of 1 percent of sales to estimate its Bad Debt Expense for the year and no Bad Debt Expense has been recorded yet.

10. Prepare the adjusting journal entry required for the year. Assume instead that Chipman uses the aging of accounts receivable method and estimates that $80 of its Accounts Receivable will be uncollectible.
11. Assume instead that Chipman uses the aging of accounts receivable method and estimates that $80 of its Accounts Receivable will be uncollectible. Prepare the year-end adjusting journal entry for recording Bad Debt Expense. Assume Chipman's year-end unadjusted balance in Allowance for Doubtful Accounts was a debit balance of $20.
12. If one of Chipman's main customers declared bankruptcy after year-end, what journal entry would be used to write off its $15 balance?

Required information [The following information applies to the questions displayed below.) Elite Events Corporation has provided event planning 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 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 $300,000 on credit. b. On January 31, the company estimated bad debts using 1 percent of credit sales. c. On February 4, the company collected $250,000 of accounts receivable. d. On February 15, the company wrote off $3,000 account receivable. e. During February, the company provided services for $250,000 on credit. f. On February 28, the company estimated bad debts using 1 percent of credit sales. g. On March 1, the company loaned $15,000 to an employee who signed a 4% note, due in 9 months. h. On March 15, the company collected $3,000 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 $9,000. Over 90 0 to 30 $ 1,000 Customer Aerosmith Biggie Small Others (not shown to save space) ZZ Top Total Accounts Receivable Estimated uncollectible (8) Total $ 2,000 2,000 99,000 7,000 $ 110,000 Number of Days Unpaid 31 to 60 61 to 90 $ 1,000 $ 1,000 42,000 9,000 $ 1,000 9,000 39,000 7,000 $ 47,000 5% $ 43,000 10% $ 10,000 20% $ 10,000 40%