Harper Service Co. experienced the following transactions for 2011, its first year of operations:
1. Provided \(\$ 98,000\) of services on account.
2. Collected \(\$ 76,000\) cash from accounts receivable.

3. Paid \(\$ 32,000\) of salaries expense for the year.
4. Adjusted the accounts using the following information from an accounts receivable aging schedule:

Required

a. Record the above transactions in general journal form and post to T-accounts.

b. Prepare the income statement for Harper Service Co. for 2011.

c. What is the net realizable value of the accounts receivable at December 31,2011 ?

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Number of Days Past Due Current Amount Percent Likely to Be Uncollectible $13,000 .01 0-30 4,000 .05 31-60 2,000 .10 61-90 1,500 .20 Over 90 days 1,500 .50 Allowance Balance