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 |
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 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 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 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 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 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 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 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 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 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...