Required information [The following information applies to the questions displayed below.] Web Wizard, Ic., 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 $38,000 on credit. b. On January 31, the company estimated bad debts using 1 percent of credit sales. c. On February 4, the company collected $19,000 of accounts receivable. d. On February 15, the company wrote off a $100 account receivable. e. During February, the company provided services for $28,000 on credit. f. On February 28, the company estimated bad debts using 1 percent of credit sales. g. On March 1, the company loaned $2,400 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. i. 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 $1,180. Number of Days Unpaid Customer Total 0-30 31-60 61-90 Over 90 Alabama Tourism 2$ 200 $ 100 $ 80 2$ 20 $ 380 Bayside Bungalows Others (not shown to save space) Xciting Xcursions 380 8,200 16,600 400 6,600 1,000 800 400 $ 7,100 $ 8,280 $ 1,020 20% $ 1,180 Total Accounts Receivable $17,580 Estimated Uncollectible (%) 2% 15% 40%

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question

I have attached the images with the information needed for the question. The question is located in the second image. I have attempted to fill it out, but I am unsure if I am correct or not. Thank you for your help.

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 $38,000 on credit.
b. On January 31, the company estimated bad debts using 1 percent of credit sales.
c. On February 4, the company collected $19,000 of accounts receivable.
d. On February 15, the company wrote off a $100 account receivable.
e. During February, the company provided services for $28,000 on credit.
f. On February 28, the company estimated bad debts using 1 percent of credit sales.
g. On March 1, the company loaned $2,400 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.
i. 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 $1,180.
Number of Days Unpaid
Customer
Total
0-30
31-60
61-90
Over 90
Alabama Tourism
$
200
$
100
80
$
20
Bayside Bungalows
Others (not shown to save space)
Xciting Xcursions
$
1,000
380
380
16,600
6,600
8,200
800
400
400
$ 7,100
$ 8,280
15%
Total Accounts Receivable
$17,580
$ 1,020
$ 1,180
Estimated Uncollectible (%)
2%
20%
40%
Transcribed Image Text: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 $38,000 on credit. b. On January 31, the company estimated bad debts using 1 percent of credit sales. c. On February 4, the company collected $19,000 of accounts receivable. d. On February 15, the company wrote off a $100 account receivable. e. During February, the company provided services for $28,000 on credit. f. On February 28, the company estimated bad debts using 1 percent of credit sales. g. On March 1, the company loaned $2,400 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. i. 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 $1,180. Number of Days Unpaid Customer Total 0-30 31-60 61-90 Over 90 Alabama Tourism $ 200 $ 100 80 $ 20 Bayside Bungalows Others (not shown to save space) Xciting Xcursions $ 1,000 380 380 16,600 6,600 8,200 800 400 400 $ 7,100 $ 8,280 15% Total Accounts Receivable $17,580 $ 1,020 $ 1,180 Estimated Uncollectible (%) 2% 20% 40%
Required:
1. For items (a)-(j), 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
+
a. Accounts Receivable
38,000
Service Revenue
38,000
b. Allowance for Doubtful Accounts
(380)
Bad Debt Expense
(380)
c. Cash
19,000
Accounts Receivable
(19,000)
d. Allowance for Doubtful Accounts
100
Accounts Receivable
(100)
e. Accounts Receivable
28,000
Service Revenue
28,000
f. Allowance for Doubtful Accounts
(280)
Bad Debt Expense
(280)
g. Cash
(2,400)
Notes Receivable (short-term)
2,400
h. Accounts Receivable
100
Allowance for Doubtful Accounts
(100)
i. Interest Receivable
12
Interest Revenue
12
j. Allowance for Doubtful Accounts
868
Bad Debt Expense
868
Transcribed Image Text:Required: 1. For items (a)-(j), 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 + a. Accounts Receivable 38,000 Service Revenue 38,000 b. Allowance for Doubtful Accounts (380) Bad Debt Expense (380) c. Cash 19,000 Accounts Receivable (19,000) d. Allowance for Doubtful Accounts 100 Accounts Receivable (100) e. Accounts Receivable 28,000 Service Revenue 28,000 f. Allowance for Doubtful Accounts (280) Bad Debt Expense (280) g. Cash (2,400) Notes Receivable (short-term) 2,400 h. Accounts Receivable 100 Allowance for Doubtful Accounts (100) i. Interest Receivable 12 Interest Revenue 12 j. Allowance for Doubtful Accounts 868 Bad Debt Expense 868
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps with 1 images

Blurred answer
Knowledge Booster
Database design
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education