Sales Service 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 income statement and indicate whether each would appear before or after Income from Operations **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 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 $1180.**Aging Analysis Chart**The chart below shows the aging analysis of accounts receivable:- **Customer**: - Alabama Tourism: Total $520; 0-30 days $0; 31-60 days $80; 61-90 days $60; Over 90 days $380 - Bayside Bungalows: 380 - Others (not shown to save space): 16,600 - Xciting Xcursions: 1,400; 0-30 days $80; 31-60 days $8,200; 61-90 days $320; Over 90 days $800- **Total Accounts Receivable**: $17,580- **Estimated Uncollectible (%)**: - Total $5,280 - 31-60 days: 15% - 61-90 days: 20% The image contains financial information related to Accounts Receivable, presented in a tabular format. The table lists different customers along with amounts receivable from them, as well as estimated uncollectible percentages for each.### Customer Accounts Receivable Details- **Customers Listed:** - Alabama Tourism - Bayside Bungalows - Others (not shown for space) - Xciting XcursionsAmounts are displayed for each customer along with totals:- **Alabama Tourism:** $200- **Bayside Bungalows:** $380- **Others:** $16,600- **Xciting Xcursions:** $400**Total Accounts Receivable:** $17,580**Estimated Uncollectible Percentages:**- 2%- 15%- 20%- 40%### Additional Instructions1. **Sales Revenue and Service Revenue** are mentioned as income statement accounts related to Accounts Receivable.2. The task is to name two other accounts related to Accounts Receivable and Notes Receivable indicated to be reported on the income statement, specifying placement relative to "Income from Operations."A small table at the bottom shows:- Web Wizard would report two other accounts but requires completion of where they appear concerning "Income from Operations."This information may be used for educational purposes to illustrate concepts in accounting, focusing on Accounts Receivable management and related income statement entries.

Step 1 While reporting income from operations via statement of income, then two more accounts other…

Answered: Sales Service and Service Revenue are…

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q