Question

a. During January, the company provided services for $42,000 on credit. b. On January 31, the company estimated bad debts using 1 percent of credit sales. c On February 4, the company collected $21,000 of accounts receivable. d. On February 15, the company wrote off a $200 account receivable. e. During February, the company provided services for $32,000 on credit f. On February 28, the company estimated bad debts using 1 percent of credit sales. g. On March 1, the company loaned $2,800 to an employee, who signed a 6% note, due in 6 months, h. On March 15, the company collected $200 on the account written off one month earlier. i. On March 31, the company accrued interest earned on the note į 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 $1,220. Customer Alabama Tourism Bayside Bungalows Others (not shown to save space) Xciting Xcursions Total Accounts Receivable Estimated Uncollectible (S) Total 8-30 $ zee $ 120 420 17,500 7,000 380 380 $18,500 $ 7,500 2% Number of Days Unpaid 31-60 61-90 Over 90 $ 7e $ 10 $ 420 8,600 1,200 700 $ 8,670 10% $ 1,210 205 $1,120 35% Required: 1. For items (a)-0), analyze the transaction to determine effects on specific financial statement accounts and the overall accounting equation. (Enter any decreases to Assets, Liabilities, or Stockholders Equity with a minus sign. Do not round intermediate calculations.) Answer is not complete. Liabilities Stockholders' Equity Service Revenue Bad Debt Expense b. 42.000 (420) C d d. f Assets Accounts Receivable Allowance for Doubtful Accounts Cash Accounts Receivable Accounts Receivable Allowance for Doubtful Accounts Accounts Receivable mu Allowance for Doubtful Accounts Cash Notes Receivable (short-term) Accounts Receivable Allowance for Doubtful Accounts Cash Accounts Receivable Interest Receivable Allowance for Doubtful Accounts 42.000 (420) 21,000 (21,000) (200) 200 32,000 2000 (320) (2.800) 2.800 200 (200) 200 (200) 28 Service Revenue Bad Debt Expense 32000 (320) 9 h. 26 i. i Interest Revenue Bad Debt Expense

Answer 1

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Particulars	Amount $	Note
Value of Note	2,800.00	A
Interest Rate	6%	B
Annual Interest	168.00	C=A*B
Monthly interest	14.00	D=C/12
Interest Revenue	14.00	See D