Web Wizard, Incorporated, 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 followingpartial list of transactions during the first quarter.

During January, the company provided services for $31,000 on credit.

On January 31, the company estimated bad debts using 2 percent of credit sales.

On February 4, the company collected $15,500 of accounts receivable.

On February 15, the company wrote off $150 account receivable.

During February, the company provided services for $21,000 on credit.

On February 28, the company estimated bad debts using 2 percent of credit sales.

On March 1, the company loaned $2,600 to an employee, who signed a 6% note, due in 6 months.

On March 15, the company collected $150 on the account written off one month earlier.

On March 31, the company accrued interest earned on the note.

On March 31, the company adjusted for uncollectible 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 has an unadjusted credit balance of $1,110.

Customer	Total	Number of Days Unpaid
		0 to 30	31 to 60	61 to 90	Over 90
Alabama Tourism	$ 230	$ 110	$ 90	$ 30
Bayside Bungalows	310				$ 310
Others (not shown to save space)	15,400	5,900	7,500	1,100	900
Xciting Xcursions	390	390
Total Accounts Receivable	$ 16,330	$ 6,400	$ 7,590	$ 1,130	$ 1,210
Estimated Uncollectible (%)		3%	10%	20%	30%

Prepare the journal entries for items (a) to (j). (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Do not round intermediate calculations.)

1. Record service revenue of $31,000 sold on account during January.

2. Record the adjusting entries for bad debts as of January 31st using 2 percent of credit sales

3. Record the collection of $15,500 of outstanding accounts receivables on February 4th

4. Record a write-off of a $150 account receivable on February 15th

5. Record service revenue of $21,000 provided on account during February

6. Record the adjusting entry for bad debts as of February 28th using 2 percent of credit sales

7. Record the receipt of a note on March 1st for a $2,600 loan to an employee

8. Record the reversal of a $150 account receivable previously written off one month earlier

9. Record the receipt of cash of $150 from the customer

10. Record the interest accrued on the note as of March 31st

11. Record the adjusting entry for bad debts as of March 31st using the aging of accounts receivable method

Part Two

Show how Accounts Receivable, Notes Receivable, and their related accounts would be reported in the current assets section of a classified balance sheet at the end of the quarter on March 31. (Do not round intermediate calculations.)

Part Three

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.