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 quarter During January, the company provided services for $35,000 on credit On January 31, the company estimated bad debts using 2 percent of credit sales On February 4, the company collected $17,500 of accounts receivable On February 15, the company wrote off a $100 account receivable During February, the company provided services for $25,000 on credit On February 28, the company estimated bad debts using 2 percent of credit sales On March 1, the company loaned $3,000 to an employee, who signed a 6 note, due in 6 months On March 15, the company collected $100 on the account written off one month earlier On March 31, the company accrued interest earned on the note On March 31, the company adjusted for uncollectible accounts, based on an aging analysis (below) Allowance for Doubtful Accounts has an unadjusted credit balance of $1,150 CustomerTotal0 3031 6061 90Over 90 Alabama Tourism$200$100$80$20 Bayside Bungalows350$350 Others (not shown to save space)16,0006,3007,9001,000800 Xciting Xcursions400400 Total Accounts Receivable$16,950$6,800$7,980$1,020$1,150 Estimated Uncollectible ( )3 15 20 40 QUESTION 1 Show how Accounts Receivable, Notes Receivable, and their related accounts would be reported in the current assets section of a classified balance sheet at the end of the quarter on March 31 (Do not round intermediate calculations ) QUESTION 2 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

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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

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 followingpartiallist of transactions during the first quarter.

During January, the company provided services for $35,000 on credit.
On January 31, the company estimated bad debts using 2 percent of credit sales.
On February 4, the company collected $17,500 of accounts receivable.
On February 15, the company wrote off a $100 account receivable.
During February, the company provided services for $25,000 on credit.
On February 28, the company estimated bad debts using 2 percent of credit sales.
On March 1, the company loaned $3,000 to an employee, who signed a 6% note, due in 6 months.
On March 15, the company collected $100 on the account written off one month earlier.
On March 31, the company accrued interest earned on the note.
On March 31, the company adjusted for uncollectible accounts, based on an aging analysis (below). Allowance for Doubtful Accounts has an unadjusted credit balance of $1,150.

CustomerTotal0-3031-6061-90Over 90

Alabama Tourism$200$100$80$20

Bayside Bungalows350$350

Others (not shown to save space)16,0006,3007,9001,000800

Xciting Xcursions400400

Total Accounts Receivable$16,950$6,800$7,980$1,020$1,150

Estimated Uncollectible (%)3%15%20%40%

QUESTION 1

Show how Accounts Receivable, Notes Receivable, and their related accounts would be reported in the current assets section of a classified balance sheet at the end of the quarter on March 31.(Do not round intermediate calculations.)

QUESTION 2

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.