Execusmart Consultants has provided business consulting services for several years. The company has been using the percentage of credit sales method to estimate bad debts but switched at the end of the first quarter this year to the aging of accounts receivable method. The company entered into the following partial list of transactions.
|Customer||Total||Number of Days Unpaid|
|0 to 30||31 to 60||61 to 90||Over 90|
|Arrow Ergonomics||$ 1,100||$ 400||$ 300||$ 400|
|Asymmetry Architecture||3,800||$ 3,800|
|Others (not shown to save space)||112,400||42,800||57,000||6,800||5,800|
|Total Accounts Receivable||$ 121,100||$ 47,000||$ 57,300||$ 7,200||$ 9,600|
|Estimated Uncollectible (%)||2%||20%||30%||40%|
Prepare the journal entries for items (a) to (j). (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Do not round intermediate calculations.)
Record service revenue of $380,000 sold on account during January.
2 - Record the adjusting entry for bad debts as of January 31, using 1 percent of credit sales method.
3 - Record the collection of $190,000 of outstanding accounts receivable on February 4.
4 - Record the write-off of $600 accounts receivable on February 15.
5 - Record service revenue of $330,000 sold on account during February.
6 - Record the adjusting entry for bad debts as of February 28 using 1 percent of credit sales method.
7 - Record the receipt of a note on March 1 for a $15,000 loan to an employee.
8 - Record the reversal of the $600 accounts receivable balance previously written off on February 15.
9 - Record the receipt of cash of $600 from the customer.
10 - Record the interest accrued on the note as of March 31.
11 - Record the adjusting entry for bad debts as of March 31, using the aging of accounts receivable method.
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