Pollard Service Co. experienced the following transactions for 2016, its first year of operations:

1. Provided $86,000 of services on account.

2. Collected $72,000 cash from accounts receivable.
3. Paid $39,000 of salaries expense for the year.

4. Pollard 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 them to T-accounts.
b. Prepare the income statement for Pollard Service Co. for 2016.
c. What is the net realizable value of the accounts receivable at December 31, 2016?

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Number of Days Percent Likely to Be Uncollectible Allowance Balance Past Due Amount Current 0-30 31-60 61-90 Over 90 days $7,500 2,000 1,500 1,000 2,000 .01 .05 .10 30 50