smart Consultants has provided business consulting services for several years. The any has been using the percentage of credit sales method to estimate bad debts but ed at the end of the first quarter this year to the aging of accounts receivable method. ompany entered into the following partial list of transactions. 3 During January, the company provided services for $340,000 on credit. On January 31, the company estimated bad debts using 1percent of credit sales. On February 4, the company collected $170,000 of accounts receivable On February 15, the company wrote off a $400 account receivable During February, the company provided services for $290,000 on credit. f On February 28, the company estimated bad debts using 1percent of credit sales On March 1, the company loaned $15,000 to an employee, who signed a 8% note due in 3 months h. On March 15, the company collected $400 on the account written off one month earlier !. 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 $8,800 9 Number of Days Unpaid Total $ 1,600 700 $ 600 $ 300 0-30 31-6061-90 Over 90 Customer Arrow Ergonomics Asynmetry hrchitecture 3, 400 $3,400 Check s 1, 600 700 600 300 Arrow Ergonomics Asymetry Architecture Others (not shown to save space) Weight Whittlers $3,400 104, 700 39,900 53,000 6,400 5,400 3,400 3,400 3,400 Total Accounts Receivable Estimated Uncollectible (%) $113,100 44,000 $53, 600 $6,700 $8, 800 45% 15% 25% epare the journal entries for items (a)-ll (If no entry is required for a transaction/event, select "No Jou try Required" in the first account field. Do not round intermediate calculations.) View transaction list Journal entry worksheet 12 3 4 5 6 7 811 Record service revenue of $340,000 sold on account during January. ournal entry worksheet 2 3 5 6 Record service revenue of $340,000 sold on account during January. Note: Enter debits before credits. Transaction General Journal ew transaction list Journal entry worksheet 2 6 7 Record the adjusting entry for bad debts as of January 31, using 1 percent of credit sales method. Note: Enter debits before credits. Transaction General Journal Debit Credit Required intormation ew transaction list Journal entry worksheet 2 4 5 678.... 11 Record the collection of $170,000 of outstanding accounts receivable on February 4 Note: Enter debits before credits Transaction General Journal Debit Credit C. Che Required information ew transaction Journal entry worksheet 2 5 6 78 11 Record the write-off of $400 accounts receivable on February 15. Note: Enter debits before credits ransaction General Journal Debit Credit Required information View transaction list Journal entry worksheet 4 6 Record service revenue of $290,000 sold on account during February. Note: Enter debits before credits. Transaction General Journal Debit ew transaction lis 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 5 6 7 of 8 Next > Required information ew transaction Journal entry worksheet 2 8 Record the receipt of a note on March 1 for a $15,000 loan to an employee. Note: Enter debits before credits Transaction General Journal Debit Credit Required information iew transaction lis Journal entry worksheet 2 3 4 5 6 78 11 Record the reversal of the $400 accounts receivable balance previously written off on February 15. Note: Enter debits before credits. Transaction General Journal Debit Credit Required information ew transaction li Journal entry worksheet K1.. 4 5 6 7 811 Record the receipt of cash of $400 from the customer. Note: Enter debits before credits. Transaction General Journal Debit dit h(2) Required information ew transaction lis Journal entry worksheet K1.4 5 6 7 8 910 11 Record the interest accrued on the note as of March 31 Note: Enter debits before credits. es Transaction General Journal Debit Credit Chec Required information ew transaction lis Journal entry worksheet 1 4 5 6 7 8 9 10111 Record the adjusting entry for bad debts as of March 31, using the aging of accounts receivable method. Note: Enter debits before credits. Transaction General Journal Debit Credit