60.1K

Verified Solution

Link Copied!

Required information The following information applies to the questions displayed below.) 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 $43,000 on credit. b. On January 31, the company estimated bad debts using 2 percent of credit sales. c. On February 4, the company collected $21,500 of accounts receivable. d. On February 15, the company wrote off a $100 account receivable. e. During February, the company provided services for $33,000 on credit. f. On February 28, the company estimated bad debts using 2 percent of credit sales. g. On March 1, the company loaned $3,000 to an employee, who signed a 6% note, due in 6 months. h. On March 15, the company collected $100 on the account written off one month earlier. 1. On March 31, the company accrued interest earned on the note. j. On March 31, the company adjusted for uncollectible accounts, based on an aging analysis (below). Allowance for Doubtful Accounts has an unadjusted credit balance of $1,230. Customer Alabama Tourism Bayside Bungalows Others (not shown to save space) Xciting Xcursions Total Accounts Receivable Estimated Uncollectible (8) Total $ 200 430 17,600 400 $18,630 Number of Days Unpaid 030 3160 6190 Over 90 $ 100 $ 80 $ 20 $ 430 7,100 8,700 1,000 800 400 $7,600 $8,780 $1,020 $1,230 38 15% 20% 30% Requirea! 1. For items (a)-0), analyze the transaction to determine effects on specific financial statement accounts and the overall accounting equation. (Enter any decreases to Assets, Liabilities, or Stockholders Equity with a minus sign. Do not round intermediate calculations.) Assets Liabilities Stockholders' Equity View transaction list Journal entry worksheet

Answer & Explanation Solved by verified expert

See Answer