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Check my work Required Information PA8.4 (Algo) Accounting for Accounts and Notes Receivable Transactions [LO 8-2, LO 8-3) [The following information applles to the questions displayed below) 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 following partial list of transactions during the first quarter. a. During January, the company provided services for $37,000 on credit b. On January 31, the company estimated bad debts using 2 percent of credit sales c. On February 4, the company collected $18,500 of accounts receivable, d. On February 15, the company wrote off $150 account receivable. e. During February, the company provided services for $27,000 on credit 1 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 employee, who signed a 6% note, due in 6 months h On March 15, the company collected $150 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 the following aging analysis, which includes the preceding transactions (as well as others not listed). Prior to the adjustment, Allowance for Doubtful Accounts has on unadjusted credit balance of $1,170 O to 10 Number of Days Unpaid 31 to 60 61 to 90 $90 530 over 90 1 110 Customer Alabama Tourism Bayside Bungalows Others (not shown to save space) Xciting Xaurosons Total 5230 370 16,600 396 $ 370 900 3.100 1.100 6,500 390 LOGO --- - g. On March 1, the company loaned $2,600 to an employee, who signed a 6% note, due 6 months n. 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, J. 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 $1.170. Number of Days Unpaid 31 to 60 61 to 90 $ 90 $ 30 0 to 30 $ 110 Over 90 5370 Total $ 230 370 16,600 390 $ 17,590 8,100 Customer Alabans Tourism Bayside tungalows Others (not shown to save space) Xciting Xcursions Total Accounts Receivable Estimated Uncollectible (1) 1.100 900 6,500 390 $ 7,000 38 $ 8,190 100 5 1.130 200 $ 1,270 300 PA8-4 (Algo) Part 1 Required: 1. For items (a) to (i), 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.) Required Information Assets Liabilities Stockholders' Equity b C d d . - 0 1 9 9 Required information Liabilities Stockholders' Equity ts

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