Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Can your explain what am I missing and why is that? [The following information applies to the questions displayed below.] Web Wizard, Inc., has provided

image text in transcribedimage text in transcribed

Can your explain what am I missing and why is that?

[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 $40,000 on credit. b. On January 31, the company estimated bad debts using 1 percent of credit sales. c. On February 4, the company collected $20,000 of accounts receivable. d. On February 15, the company wrote off a $100 account receivable. e. During February, the company provided services for $30,000 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 $1,200. Number of Days Unpaid 31- 60 $ 0- 30 $ Customer Total 61 - 90 Over 90 $ $ Alabama Tourism 200 100 80 20 $ 1, 000 Bayside Bungalows Others (not shown to save space) Xciting Xcursions 400 400 8, 400 17, 000 6, 800 800 400 400 $ 18, 000 $ 7, 300 $ 1, 020 $ 1, 200 $ 8, 480 Total Accounts Receivable Estimated Uncollectible (%) 2% 10% 20% 40% 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.) Answer is not complete. WEB WIZARD, INC. Partial Balance Sheet At March 31 Assets Current Assets: $ 18,000 Accounts Receivable Allowance for Doubtful Accounts Accounts Receivable, Net of Allowance Notes Receivable (short-term) 2,400 Interest Receivable 12

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting Reporting, Analysis And Decision Making

Authors: Shirley Carlon

6th Edition

0730363279, 9780730363279

More Books

Students also viewed these Accounting questions