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:

1-a. For items (a) through (j), analyze the amount and effects on specific financial statement accounts and the overall accounting equation. (Enter any decreases to the account with a minus sign.)

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.)

2. Show how the receivables related to these transactions would be reported in the current assets section of a classified balance sheet

3. Name the accounts related to Accounts Receivable and Note Receivable that would be reported on the income statement and indicate whether they would appear before or after Income from Operations.

Required 1-a. For items (a) through ), analyze the amount and effects on specific financial statement accounts and the overall accounting equation. (Enter any decreases to the account with a minus sign.) Transaction Assets Liabilities Shareholders' Equity Accounts receivable Allowance for doubtful accounts Accounts receivable Cash Accounts receivable Allowance for doubtful accounts Accounts receivable Allowance for doubtful accounts 40,000 Service revenue 40,000 Bad debt expense 20,000 100 30,000 Service revenue 30,000 Bad debt expense otes receivable Cash Accounts receivable Allowance for doubtful accounts 2,400 h1. reversal of write-off 100 h2. collection Cash 100 Accounts receivable 100 View transaction list Journal entry worksheet 4 5 6 7 8 9 10 Record the adjustment (bad debt expense) for Allowance of doubtful accounts which has an unadjusted credit balance of $1,200 Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal 2. Show how the receivables related to these transactions would be reported in the current assets section of a classified balance sheet. (Amounts to be deducted should be indicated by a minus sign.) WEB WIZARD, INC. Partial Balance Sheet At March 31, 2017 Assets Current assets: Accounts receivable Less: Allowance for doubtful accounts Note receivable Accumulated other comprehensive income $18,000 1,678 $ 19,678 2,400 3. Name the accounts related to Accounts Receivable and Note Receivable that would be reported on the income statement and indicate whether they would appear before or after Income from Operations. Accounts Reported on the Income Statement Before/After Income from Operations