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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 $47,000 on credit. b. On January 31, the company estimated bad debts using 2 percent of credit sales. c. On February 4, the company collected $23,500 of accounts receivable. d. On February 15, the company wrote off a $150 account receivable. e. During February, the company provideds f On February 28, the company estimated bad debts using 2 percent of credit sales. g. On March 1, the company loaned $2,600 to an empl h. On March 15, the company collected $150 on the account written off one month earlier oyee, who signed a 6% note, due in 6 months. L On March 31, the company accrued interest earn note. 1, the company adjusted for uncollectible accounts, based on an aging analysis (below) Allowance for Doubtful Accounts has an unadjusted credit balance of $1,270 Nunber of Daya Unpaid stomer Alabama Touriam Bayaide Bungalows Othera (not shown to save apace Total $ 230 470 0-3031-60 110 90 30 $ 470 900 18.600 7.500 9.100 1.100

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