[The following information applies to the questions displayed
below.] Web Wizard, Inc. has provided information technology
services for several years. The company uses the percentage of
credit sales method to estimate bad debts for internal monthly
reporting purposes. At the end of each quarter, the company adjusts
its records using 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 $48,000 on credit. b. On January 31, the company
estimated bad debts using 1 percent of credit sales. c. On February
4, the company collected $24,000 of accounts receivable. d. On
February 15, the company wrote off a $200 account receivable. e.
During February, the company provided services for $38,000 on
credit. f. On February 28, the company estimated bad debts using 1
percent of credit sales. g. On March 1, the company loaned $2,800
to an employee who signed a 6% note, due in 6 months. h. On March
15, the company collected $200 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 $1,280.
Number of Days Unpaid Customer Total 0–30 31–60 61–90 Over 90
Alabama Tourism $ 200 $ 120 $ 70 $ 10 Bayside Bungalows 480 $ 480
Others (not shown to save space) 18,700 7,600 9,200 1,200 700
Xciting Xcursions 380 380 Total Accounts Receivable $ 19,760 $
8,100 $ 9,270 $ 1,210 $ 1,180 Estimated uncollectible (%) 2 % 10 %
20 % 35 % rev: 10_06_2015_QC_CS-26504 9.value: 2.50 pointsRequired
information 2. Prepare the journal entries for items (a)–(j). (If
no entry is required for a transaction/event, select “No Journal
Entry Required” in the first account field.)