Question

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 the first quarter a. During January, the company provided services for $49.000 on credit b On January 31, the company estimated bad debts using 2 percent of credit sales. c On February 4, the company collected $24,500 of accounts receivable. d On February 15, the company wrote off a $100 account receivable e During February, the company provided services for $39,000 on credit f On February 28, the company estimated bad debts using 2 percent of credit sales. g On March 1, the company loaned $3,000 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. 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 $1,290. Number of Total Alabama Touris Bayside Bungalows Others (not shown to save space) xciting Xcursions 280 180 8 20 S 496 18,880 7,78e 9,381,8 Total Accounts Receivable Estimated uncollectible (%) $19,890 8,280 9,388 1,828 1,29e 38% 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 Intermedlate calculatlons.)

Answer 1

Answer:

WEB WIZARD INC
Partial Balance Sheet
At March 31
Assets
Current Assets:
Accounts Receivable	$ 19,890.00
Allowance for doubtful debts	($   2,162.00)
Accounts Receivable, Net of Allowance		$ 17,728.00
Notes Receivable(Short Term)		$    3,000.00
Interest Receivable		$          15.00

Working Note 1
Total Accounts Receivable	$ 19,890.00	$ 8,200.00	$ 9,380.00	$ 1,020.00	$ 1,290.00
Estimated Uncollectible (%)		2%	15%	20%	30%
Estimated Uncollectible ($)	$    2,162.00	$     164.00	$ 1,407.00	$     204.00	$     387.00

Working Note 2

Interest = $3,000* 1/12*6%= $15.

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