Roth Inc. experienced the following transactions for 2016, its first year of operations:

1. Issued common stock for $50,000 cash.

2. Purchased $140,000 of merchandise on account.

3. Sold merchandise that cost $110,000 for $250,000 on account.

4. Collected $236,000 cash from accounts receivable.
5. Paid $118,000 on accounts payable.

6. Paid $50,000 of salaries expense for the year.

7. Paid other operating expenses of $28,000.

8. Roth 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, statement of changes in stockholders€™ equity, balance sheet, and statement of cash flows for Roth Inc. 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 $10,000 2,000 1,200 500 300 01 05 10 .20 .50