Web Wizard, Inc., has provided information technology services for several years. The company uses the percentage of credit sales method to estimate bad debts for internal monthly reporting purposes. At the end of each quarter, the company adjusts its records using the aging of accounts receivable method. The company entered into the following selected transactions during the first quarter of 2017, 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 receivable. e. During February, the company provided services for $30,000 on credit On February 28, the company estimated bad debts using 1 percent of credit sales. g. On March 1, the company loaned $2,400 to an employee who signed a 6 percent note, due in six months. h. On March 15, the company collected $100 on the account written off one month earlier. LOn March 31, the company adjusted for uncollectable accounts, based on the following aging analysis, which includes the preceding transactions (as well as others not listed). Prior to the adjustment. Allowance for Doubtful Accounts had an unadjusted credit balance of $1,200 1. On March 31, the company accrued interest eamed on the note. Bumber of Days Unpaid Customer Total 0-30 31-60 61-90 Over 90 s 100 $ 80 5 20 $ Altavista Tourism Bayling Bungalows Others (not shown to save space) xeiting Xoursions $ 200 400 17.000 400 400 800 3,400 1,000 6,000 400 Total Accounts Receivable $18,000 $7,300 $8,480 $1,020 $1,200 Estimated uncollectable (1) 20 108 200 405 1-b. Prepare the journal entries for the above items. (If no entry is required for a transaction/event, select "No journal entry required In the first account field.) View transaction list X 1 Record the services provided on credit. 11 Credit 2 Record the company's estimated bad debts using 1 percent of credit sales. 1 Record the collection of accounts receivable, 4 Record the write-off of account receivable. S Record the services provided on credit. 6 Record the company's estimated bad debts using 1 percent of credit sales 7 Record the company's loan to an employee who signed a Note :- Journal entry has been entered Record entry Clear entry View general joumal 8 Record the reversal of write-off. 9 Record the collection of written-off amount. Credit 10 Record the adjustment (bad debt expense) for Allowance of doubtful accounts which has an unadjusted credit balance of $1,200. 11 Record the accrual of interest on the Note. Note : - Journal entry has been entered Record entry Clear entry View general Journal