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Web Wizard inc. problem...

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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 partial list of transactions during the first quarter During January, the company provided services for $42.000 on credit. b. On January 31. the company estimated bad debts using 1percent of credit sales. c. On February 4, the company collected $21,000 of accounts receivable. d. On February 15, the company wrote off a $200 account receivable. During February, the company provided services for $32,000 on credit. f On February 28, the company estimated bad debts using 1 percent of credit sales g. On March 1, the company loaned $2,800 to an employee who signed a 6% note, due in 6 months. h. On March 15, the company collected $200 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 an aging analysis (below). Allowance for Doubtful Accounts has an unadjusted credit balance of $1,220. 2. Prepare the journal entries for items (a)-O. (If no entry is required for a transaction/event, select No Journal Entry Required" in the first account field.) Number of Days Unpaid view transaction list View general journal Customer 0-30 31-60 6-90 Journal Entry worksheet 200 120 70 Alabama Tourism 10 Bayside Bungalows 420 420 Others (not shown to save space) 17500 7000 8,600 1,200 Record service revenue of $42,000 sold on account during January Xciting Xcursions 380 380 Total Accounts Receivable $18,500 7500 $8,670 $1,210 $1120 Estimated uncollectible 2% 20% 35% transaction General Journal Debit credit 3, Show how Accounts Receivable, Notes Receivable, and their related accounts would be reported in the current assets section of a classified balance sheet WEB WIZARD, INC. Partial Balance Sheet At March 31 Enter debits before credits Assets record entry Current Assets: 4. 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 Web Wizard would report Income from Operations Income from Operations

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