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[ The following information applies to the questions displayed below. ] Execusmart Consultants has provided business consulting services for several years. The company has been
The following information applies to the questions displayed below.
Execusmart Consultants has provided business consulting 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 this year to the aging of accounts receivable method. The company entered into the following partial list of transactions.
During January, the company provided services for $ on credit.
On January the company estimated bad debts using percent of credit sales.
On February the company collected $ of accounts receivable.
On February the company wrote off $ account receivable.
During February, the company provided services for $ on credit.
On February the company estimated bad debts using percent of credit sales.
On March the company loaned $ to an employee, who signed a note due in months.
On March the company collected $ on the account written off one month earlier.
On March the company accrued interest earned on the note.
On March 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 $
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