Web Wizard, has provided Information technology services for several years. For the first two months of the current yearthe company has used the percentage of credit sales method 10 estimate bad debts. At the end of the first quarter the company switched to the aging accounts receivable method. The company entered into the following partial of transactions during the quaner a During January, the company provided services for \$40,000 credit b. On January 31, the company estimated bad debts using 1 percent of credit sales. On February 4, the company collected $20,000 of accounts receivable February 15, the company wrote off a $100 account receivable. . During Februarythe company provided services for $ 30,000 on credit February 28the company estimated bad debts using 1 percent of credit sales 9. On March 1the company loaned \$2.400 to an employee, who signed a 6% notedue 6 months. On March 15, the company collected $100 on the account willen of one eatler March 31. the company accrued earned on the note. March 31. the adjusted for uncollectible accounts, based on an aging analysis below) Allowance for Doubtful Accounts has an unadjusted credit balance of 1.200.

Required Information [The following information applies to the questions displayed below! Web Wizard, Inc., 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 quartet a During January, the company provided services for $40.000 on credit b. On January 31, the company estimated bad debts using 1 percent of credit sales c On February 4. the company collected $20,000 of accounts receivable d. On February 15. the company wrote off a $100 account recevable e During February, the company provided services for $30.000 on crear On February 28, the company estimated bad debts using percent of credit sales 9 On March 1 the company loaned $2.400 to an employee, who gned a 6% note due in 6 months h On March 15, the company collected $100 on the account written off one month earner On March 31, the company accrued interest earned on the note Jon March 31, the company adjusted for uncollectible accounts, based on an aging analysis (below). Allowance for Doubtful Accounts has an unadjusted credit balance of $1.200. Total 2 -10 100 umber Days Last 11 52-10 5 2 Customer Alba Tours Bayside Bungalows Others not show to save ace) xciting custom Total Accounts Receivable Este collectible . 2. 00 si 3.100 $0. 1.29 12 9-30 5 Customer Alabama Touris Bayside Bungalows Others (not shown to save space) Xciting Xcursions Total Accounts Receivable Estimated Uncollectible (5) Total $ 200 400 17.000 Number of Days Unpaid 31-60 61-90 Over 90 5 88 $ 20 $ 8,400 1,000 800 6,800 400 $7,300 2x $18,000 $1,020 58,480 20% 51,260 40% 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 Web Wizard would report Income from Operations Income from Operations Required Information [The following information applies to the questions displayed below! Web Wizard, Inc., 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 quartet a During January, the company provided services for $40.000 on credit b. On January 31, the company estimated bad debts using 1 percent of credit sales c On February 4. the company collected $20,000 of accounts receivable d. On February 15. the company wrote off a $100 account recevable e During February, the company provided services for $30.000 on crear On February 28, the company estimated bad debts using percent of credit sales 9 On March 1 the company loaned $2.400 to an employee, who gned a 6% note due in 6 months h On March 15, the company collected $100 on the account written off one month earner On March 31, the company accrued interest earned on the note Jon March 31, the company adjusted for uncollectible accounts, based on an aging analysis (below). Allowance for Doubtful Accounts has an unadjusted credit balance of $1.200. Total 2 -10 100 umber Days Last 11 52-10 5 2 Customer Alba Tours Bayside Bungalows Others not show to save ace) xciting custom Total Accounts Receivable Este collectible . 2. 00 si 3.100 $0. 1.29 12 9-30 5 Customer Alabama Touris Bayside Bungalows Others (not shown to save space) Xciting Xcursions Total Accounts Receivable Estimated Uncollectible (5) Total $ 200 400 17.000 Number of Days Unpaid 31-60 61-90 Over 90 5 88 $ 20 $ 8,400 1,000 800 6,800 400 $7,300 2x $18,000 $1,020 58,480 20% 51,260 40% 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 Web Wizard would report Income from Operations Income from Operations