Question

Required Information PA8-4 Accounting for Accounts and Notes Receivable Transactions [LO 8-2, LO 8-3] [The following informat
Total 230 Number of Days Unpaid 1-60 61-9 Over 90 $ 90 $ 12 customer Alabama Tourism Bayside Bungalows Others (not shown to s
Assets Liabilities Stockholders Equity Accounts Receivable 37000 37.000 (740) Bad Debt Expense Cash Accounts Receivable 18.5
hework Saved PA8-4 Part 3 3. Show how Accounts Receivable, Notes Receivable, and their related accounts wou classified balanc
$17,590 57, Total Accounts Receivable Estimated Uncollectible (%) $8,190 10% $1,150 20% $1,270 30% PA8-4 Part 4 4. Sales Reve
0 0
Add a comment Improve this question Transcribed image text
Answer #1

Solution 1:

Event Assets = Liabilities + Stockholder's Equity
a Accounts receivables $37,000.00 Service revenue $37,000.00
b Allowance for doubtful accounts -$740.00 Bad debts expense -$740.00
c Cash $18,500.00
Accounts receivables -$18,500.00
d Allowance for doubtful accounts $150.00
Accounts receivables -$150.00
e Accounts receivables $27,000.00 Service revenue $27,000.00
f Allowance for doubtful accounts -$540.00 Bad debts expense -$540.00
g Note receivables $2,600.00
Cash -$2,600.00
h Accounts receivables $150.00
Allowance for doubtful accounts -$150.00
Cash $150.00
Accounts receivables -$150.00
i Interest receivables $13.00 Interest revenue $13.00
J Allowance for doubtful accounts -$466.00 Bad debts expense -$466.00
Computation of allowance for estimated uncollectibles - Web Wizard
Customer Balance 0-30 days 31-60 days 61-90 days Over 90 days
Total Receivables $17,590.00 $7,000.00 $8,190.00 $1,130.00 $1,270.00
Percentage uncollectibles 3% 10% 20% 30%
Allowance for doubtful accounts $1,636.00 $210.00 $819.00 $226.00 $381.00

Solution 3:

Web Wizard Inc. (Partial Balance Sheet)
At March 31
Assets Amount
Current Assets:
Accounts receivables - Gross $17,590.00
Allowance for doubtful accounts $1,636.00
Accounts receivables, net of allowance $15,954.00
Note Receivables $2,600.00
Interest receivables $13.00

Solution 4:

Web Wizard would report:
Bad debts expense before Income from operations
Interest revenue after Income from operations
Add a comment
Know the answer?
Add Answer to:
Required Information PA8-4 Accounting for Accounts and Notes Receivable Transactions [LO 8-2, LO 8-3] [The following...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • Required Information PA8-4 Accounting for Accounts and Notes Receivable Transactions (LO 8-2, LO 8-3] The following...

    Required Information PA8-4 Accounting for Accounts and Notes Receivable Transactions (LO 8-2, LO 8-3] 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...

  • The following information applies to the questions displayed below.) Web Wizard, Inc., has provided information technology...

    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...

  • Need help with partial balance sheet. Required information The following information applies to the questions displayed...

    Need help with partial balance sheet. 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 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...

  • Required information (The following information applies to the questions displayed below.) Web Wizard, Inc., has provided...

    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 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...

  • Web Wizard, Inc., has provided information technology services for several years. For the first two months...

    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. During January, the company provided services for $46,000 on credit. On January 31, the company...

  • Need help with this balance sheet please! Required Informatlon The following information applies to the questions...

    Need help with this balance sheet please! Required Informatlon 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...

  • Required information [The following information applies to the questions displayed below.] Web Wizard, Inc., has provided...

    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 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. During January, the company...

  • The following formation applies to the questions displayed below. Web Wizard, Inc., has provided information technology...

    The following formation 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...

  • Web Wizard, Inc., has provided information technology services for several years. For the first two months of the curre...

    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 accotnts receivable method. The company entered into the following partial list of transactions during the first quarter. a. During January, the company provided services for $34,000 on credit. b. On January 31,...

  • Required information (The following information applies to the questions displayed below.) h oo The company en...

    Required information (The following information applies to the questions displayed below.) h oo The company endete. At com 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...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT