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Web Wizard, Inc. has provided information technology services for several years. The company uses the sales method to estimate bad debts for internal monthly reporting

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Web Wizard, Inc. has provided information technology services for several years. The company uses the sales method to estimate bad debts for internal monthly reporting purposes At the end quarter, the company adjusts,its records using the oging of accounts receivable method. The of each company entered into the following partia/ list of transactions during the first quarter o. During January, the company provided services for $39,000 on credit b. On Januory 31, the company estimated bad debts using 2 percent of credit soles. c. On February 4, the company collected $19.500 of accounts receivable d. On February 15, the company wrote off a $200 account receivable e. During February, the company provided services for $29,000 on credit f On February 28, the company estimated bad debts using 2 percent of credit sales g. On March 1. the company loaned $2,000 to an em ployee who signed a 6% note, due in 6 months. h. On March 15. the company collected $200 on the account written off one month earlier i. On March 31, the company accrued interest earmed on the note J On March 31, the company edjusted for uncollectible accounts. bosed on an aging analysis (below) Allowance for Doubtful Accounts has an unadjusted credit balonce of $1.190. Number of Deys Unpaid Customer Total 0-30 31-60 61-90 Over 90 $ 200 120 70$10 Alabama Tourism Bayside Bungslows Others (not shown to seve spoce 16.900 6.700 8,300 1200700 390 s 390 Xciting Xcursions 380380 Total Accounts Receivable Estimated uncollectible (%) $17.870 $7.200 $8.370 $ 1.210 $1.090 3% 10-20% 40% 1. For items (a-(). analyze the amount and drection or - ) of effects on specific financial statement accounts and the overall accounting equation. (Enter any decreases to account balances with a minus sign) b. c. h, 3. Show how Accounts Receivable, Notes Receivable, and their related accounts would be reported in the current assets section of a classified balance sheet WEB WIZARD, INC Partial Balance Sheet At March 31 Assets Current Assets 4. Sales Revenue and Service Revenue are two income statement accounts that relate t ble. Name two other accounts related to Accounts Receivable and Notes Receivable that would Receiva 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

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