formation for the questions is located in the image attached. Required 1 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 intermediate calculations.) WEB WIZARD, INC. Partial Balance Sheet At March 31 Assets Current Assets: [ ] [ ] [ ] [ ] Accounts Receivable, Net of Allowance [ ] [ ] [ ] [ ] [ ] [ ] [ ] Required 2 Sales Revenue and Service Revenue are two income statement accounts that relate to Accounts Receivable. Name two other accounts related to Accounts Receivable and Notes Receivable that would be reported on the income statement and indicate whether each would appear before, or after, Income from Operations. Web Wizard would report [ ] [ ] Income from Operations. [ ] [ ] Income from Operations.
Information for the questions is located in the image attached.
Required 1
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 intermediate calculations.)
WEB WIZARD, INC.
Partial Balance Sheet
At March 31
Assets
Current Assets:
[ ] [ ]
[ ] [ ]
Accounts Receivable,
Net of Allowance [ ]
[ ] [ ]
[ ] [ ]
[ ] [ ]
Required 2
Sales Revenue and Service Revenue are two income statement accounts that relate to Accounts Receivable. Name two other accounts related to Accounts Receivable and Notes Receivable that would be reported on the income statement and indicate whether each would appear before, or after, Income from Operations.
Web Wizard would report
[ ] [ ] Income from Operations.
[ ] [ ] Income from Operations.
![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 company provided services for $38,000 on credit.
b. On January 31, the company estimated bad debts using 1 percent of credit sales.
c. On February 4, the company collected $19,000 of accounts receivable.
d. On February 15, the company wrote off a $100 account receivable.
e. During February, the company provided services for $28,000 on credit.
f. On February 28, the company estimated bad debts using 1 percent of credit sales.
g. On March 1, the company loaned $2,400 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.
j. 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 $1,180.
Number of Days Unpaid
Customer
Total
0-30
31-60
61-90
Over 90
Alabama Tourism
$
200
$
100
80
$
20
Bayside Bungalows
Others (not shown to save space)
Xciting Xcursions
$
1,000
380
380
16,600
6,600
8,200
800
400
400
$ 7,100
$ 8,280
15%
Total Accounts Receivable
$17,580
$ 1,020
$ 1,180
Estimated Uncollectible (%)
2%
20%
40%](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd3da9567-c8e6-421d-9036-38d3212a2039%2F5f678ec5-e1b6-4388-98d8-f0ac50f4faea%2F4env4qj_processed.png&w=3840&q=75)
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