Web Wizard, incorporated, has provided information technology services for several years. For the first two months of the current yeas, the company has used the percentage of credit sales method to estimate bad debts. At the end of the first quarte, the company swiched to the aging of accounts recelvable method. The company entered into the following partial list of transoctions during the first quarter. a. During January, the company provided services for $45,000 on credit. b. On January 31 , the company estimoted bed debts using 2 percent of credit sales c. On February 4 , the company eollected $22,500 of accounts recetvabte d. On February 15 , the company wrote of $200 occount recelvable. e. During February, the company provided services for $35,000 on credit. 1. On February 28 , the company estimated bad debts using 2 percent of cred t sales. 9 On Merch 1, the compsny lonned $2,000 to an employen, who signed a 6% note, due in 6 months h. On March 15, the compary collected $200 on the account written off one month earlies, L. On March 31, the company accrued interest earned on the note. f. On March 3t, the company adjusted for uncollectible accounts, based on the folowing aging analysis, which includes. the preceding transactions (as well as others not listed). Prior to the adjustment, Allowance for Doubtful Accounts has an unedjusted credit balance of $1,250. PA8-4 (Algo) Part 1 Required: 1. For items (a) to Q, analyze the transaction to determine effects on specific financial statement accounts and the overall accounting equation, (Enter any decreases to Assets, Llabilities, or Stockholders Equity with a minus sign. Do not round intermediate calculations) Web Wizard, incorporated, has provided information technology services for several years. For the first two months of the current yeas, the company has used the percentage of credit sales method to estimate bad debts. At the end of the first quarte, the company swiched to the aging of accounts recelvable method. The company entered into the following partial list of transoctions during the first quarter. a. During January, the company provided services for $45,000 on credit. b. On January 31 , the company estimoted bed debts using 2 percent of credit sales c. On February 4 , the company eollected $22,500 of accounts recetvabte d. On February 15 , the company wrote of $200 occount recelvable. e. During February, the company provided services for $35,000 on credit. 1. On February 28 , the company estimated bad debts using 2 percent of cred t sales. 9 On Merch 1, the compsny lonned $2,000 to an employen, who signed a 6% note, due in 6 months h. On March 15, the compary collected $200 on the account written off one month earlies, L. On March 31, the company accrued interest earned on the note. f. On March 3t, the company adjusted for uncollectible accounts, based on the folowing aging analysis, which includes. the preceding transactions (as well as others not listed). Prior to the adjustment, Allowance for Doubtful Accounts has an unedjusted credit balance of $1,250. PA8-4 (Algo) Part 1 Required: 1. For items (a) to Q, analyze the transaction to determine effects on specific financial statement accounts and the overall accounting equation, (Enter any decreases to Assets, Llabilities, or Stockholders Equity with a minus sign. Do not round intermediate calculations)
