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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

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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 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 $33,000 on credit b. On January 31, the company estimated bad debts using 2 percent of credit sales. c. On February 4, the company collected $16,500 of accounts receivable. d. On February 15, the company wrote off a $200 account receivable, e. During February, the company provided services for $23,000 on credit. 1 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 employee, 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 On March 31, the company accrued interest eamed on the note. On March 31, the company adjusted for uncollecuble accounts, based on an aging analysis (below). Allowance for Doubtful Accounts has an unadjusted credit balance of $1,130. 0-30 $ 120 Customer Alabama Tourism Bayside Bungalows Others (not shown to save space) xciting Xcursions Total Accounts Receivable Estimated Uncollectible (5) Total 5 200 330 15,700 380 516,010 Number of Days Unpaid 31-60 61-90 Over 90 5 70 5 18 5 330 7,700 1,200 78e 6,100 380 5 6,500 $1,030 $7,770 104 $1,210 204 Shown to 7,700 Save Space) Xciting Xcursions Total Accounts Receivable Estimated Uncollectible (%) 15,700 380 $16, 610 6,100 380 $ 6,600 3% $ 7,770 10% 3. Show how Accounts Receivable, Notes Recelvable, and thelr related accounts wo classified balance sheet at the end of the quarter on March 31. (Do not round Inte % Answer is not complete. WEB WIZARD, INC. Partial Balance Sheet At March 31 Assets Current Assets Accounts Receivable $ 16,810 Accounts Receivable, Net of Allowance Notes Receivable short-term) Cash Interest Receivable 200 18.500 X 2

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