uring the first quarter. a. During January, the company provided services for $50,000 on credit. b. On January 31, the company estimated bad debts using 1 percent of credit sales. c. On February 4, the company collected $25,000 of accounts receivable. d. On February 15, the company wrote off $150 account receivable. e. During February, the company provided services for $40,000 on credit. f. On February 28, the company estimated bad debts using 1 percent of credit sales. g. On March 1, the company loaned $2,200 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 include the preceding transactions (as well as others not listed). Prior to the adjustment, Allowance for Doubtful Accounts ha: an unadjusted credit balance of $1,300.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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partial list or transactions during the first quarter.
a. During January, the company provided services for $50,000 on credit.
b. On January 31, the company estimated bad debts using 1 percent of credit sales.
c. On February 4, the company collected $25,000 of accounts receivable.
d. On February 15, the company wrote off $150 account receivable.
e. During February, the company provided services for $40,000 on credit.
f. On February 28, the company estimated bad debts using 1 percent of credit sales.
g. On March 1, the company loaned $2,200 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
an unadjusted credit balance of $1,300.
Customer
Alabama Tourism
Bayside Bungalows
Others (not shown to save space)
Xciting Xcursions
Total
$ 230
500
19,200
390
Total Accounts Receivable
$ 20,320
Estimated Uncollectible (%)
Number of Days Unpaid
0 to 30
$ 110
7,800
390
31 to 60
$ 90
9,400
61 to 90
$ 30
Over 90
1,100
$ 500
900
$8,300
$ 9,490
$ 1,130
$1,400
2%
10%
20%
309
2. Prepare the journal entries for items (a) to (). (If no entry is required for a transaction/event, select "No Journal Entry Required"
the first account field. Do not round intermediate calculations.)
View transaction list
Journal entry worksheet
www.*
5
10
11
Transcribed Image Text:partial list or transactions during the first quarter. a. During January, the company provided services for $50,000 on credit. b. On January 31, the company estimated bad debts using 1 percent of credit sales. c. On February 4, the company collected $25,000 of accounts receivable. d. On February 15, the company wrote off $150 account receivable. e. During February, the company provided services for $40,000 on credit. f. On February 28, the company estimated bad debts using 1 percent of credit sales. g. On March 1, the company loaned $2,200 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 an unadjusted credit balance of $1,300. Customer Alabama Tourism Bayside Bungalows Others (not shown to save space) Xciting Xcursions Total $ 230 500 19,200 390 Total Accounts Receivable $ 20,320 Estimated Uncollectible (%) Number of Days Unpaid 0 to 30 $ 110 7,800 390 31 to 60 $ 90 9,400 61 to 90 $ 30 Over 90 1,100 $ 500 900 $8,300 $ 9,490 $ 1,130 $1,400 2% 10% 20% 309 2. Prepare the journal entries for items (a) to (). (If no entry is required for a transaction/event, select "No Journal Entry Required" the first account field. Do not round intermediate calculations.) View transaction list Journal entry worksheet www.* 5 10 11
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