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 selected transactions during the first quarter of $2020$:

During January, the company provided services for $$40,000$ on credit.

On January $31,$ the company estimated bad debts using $1$ percent of credit sales.

On February $4,$ the company collected $$20,000$ of accounts receivable.

On February $15,$ the company wrote off a $$100$ account receivable.

During February, the company provided services for $$30,000$ on credit.

On February $28,$ the company estimated bad debts using $1$ percent of credit sales.

On March $1,$ the company loaned $$2,400$ to an employee who signed a $6$ percent note, due in six months.

On March $15,$ the company collected $$100$ on the account written off one month earlier.

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 had an unadjusted credit balance of $$1,200.$

On March $31,$ the company accrued interest earned on the note.

Number of Days Unpaid

Customer Total $0-3031-6061-90$ Over $90$

Altavista Tourism $ $200$ $ $100$ $ $80$ $ $20$

Bayling Bungalows $400$ $ $400$

Others $($not shown to save space$)17,0006,8008,4001,000800$

Xciting Xcursions $400400$

Total Accounts Receivable $ $18,000$ $ $7,300$ $ $8,480$ $ $1,020$ $ $1,200$

Estimated uncollectible $(\%)2\%10\%20\%40\%$

$2.$ Show how the receivables related to these transactions would be reported in the current assets section of a classified balance sheet. $($Amounts to be deducted should be indicated by a minus sign.$)$

$3.$ Name the accounts related to Accounts Receivable and Note Receivable that would be reported on the income statement and indicate whether they would appear before or after Income from Operations.