[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. a. During January, the company provided services for $350,000 on credit. b. On January 31, the company estimated bad debts using 1 percent of credit sales. c. On February 4, the company collected $175,000 of accounts receivable. d. On February 15, the company wrote off a $450 account receivable. e. During February, the company provided services for $300,000 on credit. On February 28, the company estimated bad debts using 1 percent of credit sales. g. On March 1, the company loaned $16,000 to an employee, who signed a 9% note due in 3 months. h. On March 15, the company collected $450 on the account written off one month earlier. On March 31, the company accrued Interest earned on the note. 1. 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. 700 Customer Arrow Krgonomies Asymetry Architecture Others (not shown to save space) Weight Whittiers Total Accounts Receivable Estimated Uncollectible (N) Total $ 1,600 3,500 106,700 3,500 $115,300 Number of by Ungad 0-30 31-60 61-90 Over 96 $ 800 $ $ 100 $3,500 40, 700 54,000 6,500 5,500 3.500 $45,000 $54,700 $6,600 59,000 21 200 30 405 Required: 1. For Items (a-C), analyze the amount and direction (+ or -) of effects on specific financial statement accounts and the overall accounting equation. TIP: In item ), you must first calculate the desired ending balance before adjusting the Allowance for Doubtful Accounts (Do not round Intermediate calculations. Enter any decreases to Assets, Liabilities, or Stockholders Equity with a minus sign.) Answer is complete but not entirely correct. Liables Assets Stockholders' Equity customer Arrow Ergonomic Asymmetry Architecture Others not shown to save space) Weight Mittlern Total accounts Receivable Encinated Uncollectible () Total 1 1.600 3.500 106,100 2500 31150 Thunberayungai 610 OVO U 3 800 700 100 03.500 40.700 54,000 6,500 5.500 3.500 345,000 3547700 16,600 09,000 24 201 300 408 Required: 1. For items (a)- analyze the amount and direction for -) of effects on specific financial statement accounts and the overall accounting equation. TIP: In item you must first calculate the desired ending balance before adjusting the Allowance for Doubtful Accounts (Do not round Intermediate calculations. Enter any decreases to Assets, Liabilities, or Stockholders Equity with a minus sign.) Answer is complete but not entirely correct. Liabile tockholders' Equity Service Revenue Bad Dobt Expense b 350,000 (3.000) Islo d. 0, Accounts Receivable Allowance for Double Accounts Cash Accounts Receivable Allowance for Doubtful Accounts Accounts Receivable Accounts Receivable Allowance for Doubtful Accounts Notes Receivable short-term cash Allowance for Doubtful Accounts Cash Accounts Receivable Accounts Receivable Interest Receivable Allowance for Doubtful Accounts 350.000 (3.000) 175,000 |(175,000) 450 (450) 300.000 (3.000) 16.000 (10.000) 45083 (450) (450) 450 1.440 (9.000) Service Revenu Bad Debt Expense lolo 300,000 (3.000) 0 ih 1 Interest Revenue Bad Debt Expono olo 1,440 (9.000) $115,300 20 201 300 408 Total Accounts Receivable Estimated Uncollectible (8) epare the journal entries for items (a)-1 (if no entry is required for a transaction/event, select "No Journal Er e first account field. Do not round intermediate calculations.) Answer is not complete. Dabit Transaction Credit General Journal 350,000 a Accounts Receivable Service Revenue O 350,000 3,500 > Bad Debt Expense Allowance for Doubtful Accounts O 3,500 > 175,000 C Cash Accounts Receivable 175,000 d 450 Allowance for Doubtful Accounts Accounts Receivable ol 450 @ Accounts Receivable Service Revenue ols 300,000 300,000 3,500 Bad Dobt Expenso Allowance for Doubtful Accounts 3,500 x 9 Notes Receivable (short-term) Cash . 16,000 16,000 3 (1) Accounts Receivable Allowance for Doubtful Accounts lo 450 450 h(2) Cash Accounts Receivable 450 450 10 1 Interest Receivable Interest Revenue Bad Debt Expense Allowance for Doubtful Accounts Answer is not complete. EXECUSMART CONSULTANTS Balance Sheet (Partial) At March 31 Assets Current Assets: Accounts Receivable $ 115,300 Allowance for Doubtful Accounts Accounts Receivable, Net of Allowance Interest Receivable Notes Receivable (long-term) Customer Arrow Ergonomics Asymmetry Architecture Others (not shown to save space) Weight Whittlers Total Accounts Receivable Estimated Uncollectible (*) Total $ 1,600 3,500 106,700 3,500 $115,300 Number of Days Ungad 10-30 31-60 61-90 Over 90 $ 800 $ 700 $ 100 $3,500 40,700 54,000 6,500 5,500 3,500 $ 45,000 $ 54,700 $6,600 $9,000 28 204 305 408 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. Execusmart Consultants would report Income from Operations, Income from Operations