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Required information PA8-4 (Algo) Accounting for Accounts and Notes Receivable Transactions (LO 8-2, LO 8-3) (The following information applies 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 partia/ 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. 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 adjusnent, Allowance for Doubtful Accounts has an unadjusted credit balance of $1,170 Customer Alabama Tourism Over 90 Total $ 230 Number of Daya Unpaid 31 to 60 61 to 90 $ 90 $ 30 O to 30 $ 110 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 las an unadjusted credit balance of $1170. O to 10 110 Number of Days Unpaid 31 to 60 1 to 90 6.30 Over 90 Customer Alabam Touran Bayside Bungalow Others (not shown to save space) Keiting Xcursione Total Accounts Receivable Estimated Uncollectibles Total 5.230 370 16,600 290 $ 17,590 6,500 390 1370 900 1.100 0.100 0,190 100 30 200 $1,270 JOB PA8-4 (Algo) Part 3 3. 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.) WEB WIZARD, INCORPORATED Partial Balance Sheet At March 31 Assets Current Assets Arne Dahl Nam PA8-4 (Algo) Part 3 3. 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.) WEB WIZARD, INCORPORATED Partial Balance Sheet At March 31 Assets Current Assets Accounts Receivable, Net of Allowance

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