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. a. During January, the company provided services for $44,000 on credit b. On January 31, the company estimated bad debts using 1 percent of credit sales c On February 4, the company collected $22.000 of accounts receivable d. On February 15, the company wrote off a $150 account receivable e During February, the company provided services for $34,000 on credit f On February 28, the company estimated bad debts using 1 percent of credit sales. 9. On March 1, the company loaned $2,200 to an employee, who signed a 6% note, due in 6 months. n. On March 15, the company collected $150 on the account written off one month earlier 1. On March 31, the company accrued interest earned on the note. J. 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 $1.240. 0-30 $ 110 Customer Alabana Tourism Bayside Bungalows others not shown to save soace) Total $ 230 440 18.00 Number of Days Unpaid 31-60 51-90 Over 90 $ 90 $ 30 $ 440 8.800 1.100 900 7200 COD 6 2 Prau 7 Next > Customer Alabama Tourism Bayside Bungalows Others (not shown to save space) Xciting Xcursions Total Accounts Receivable Estimated Uncollectible (%) Tota2 $ 230 440 18,000 390 $19,060 Number of Days Unpaid 31-60 61-90 Over 90 $ 110 $ 90 $ 30 $ 440 7,200 8,880 1,100 990 39e $ 7,700 $8,890 $1,130 $1,340 2% 10% 2e 305 juired: for items (@-0), analyze the transaction to determine effects on specific financial statement accounts and the overall accounting quation (Enter any decreases to Assets, Liabilities, or Stockholders Equity with a minus sign. Do not round intermediate alculations.) Assets Liabilities Stockholders' Journal entry worksheet 1 2 3 4 5 6 7 8 ..... 11 Record service revenue of $44,000 sold on account during January. Note: Enter debits before credits. Transaction General Journal Debit Credit a 3. Show how Accounts Receivable, Notes Receivable, and their related accounts woul classified balance sheet at the end of the quarter on March 31. (Do not round intern WEB WIZARD, INC. Partial Balance Sheet At March 31 2 Assets Current Assets: Accounts Receivable, Net of Allowance 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 Cola Inc and Soda Co. are two of the largest and most successful beverage companies in the world in terms of the products that they sell and their receivables management practices. To evaluate their ability to collect on credit sales, consider the following rounded amounts reported in their annual reports (amounts in millions) Fiscal Year Ended: Net Sales Accounts Receivable Allowance for Doubtful Accounts Accounts Receivable, Net of Allowance Cola Inc. 2015 2014 2013 $31,719 $27,190 $28,444 4.408 3,743 3,071 41 48 4,367 3,695 3,027 Soda Co 2015 2014 2013 $53,948 $39,732 $39,751 6,397 4,644 3,714 137 83 63 6,268 4,561 3,651 Required: 1. Calculate the receivables turnover ratios and days to collect for Cola Inc and Soda Co. for 2015 and 2014. (Use 365 days in a year. Do not round intermediate calculations on Accounts Receivable Turnover Ratio. Round your final answers to 1 decimal place. Use final rounded answers from Accounts Receivable Turnover Ratio for Days to Collect ratio calculation.) 2014 2015 Cola Inc. Soda Co. Cola Inc. Soda Co. Receivables Tumover Ratio Days to collect