Bourret Inc. experienced the following events for the first two years of its operations.

2011:

1. Provided \(\$ 60,000\) of services on account.

2. Provided \(\$ 25,000\) of services and received cash.

3. Collected \(\$ 35,000\) cash from accounts receivable.

4. Paid \(\$ 12,000\) of salaries expense for the year.

5. Adjusted the accounting records to reflect uncollectible accounts expense for the year. Bourret estimates that 5 percent of the ending accounts receivable balance will be uncollectible.

2012:

1. Wrote off an uncollectible account of \(\$ 650\).

2. Provided \(\$ 80,000\) of services on account.

3. Provided \(\$ 15,000\) of services and collected cash.

4. Collected \(\$ 62,000\) cash from accounts receivable.

5. Paid \(\$ 20,000\) of salaries expense for the year.

6. Adjusted the accounts to reflect uncollectible accounts expense for the year. Bourret estimates that 5 percent of the ending accounts receivable balance will be uncollectible.

Required

a. Record the 2011 events in general journal form and post them to T-accounts.

b. Prepare the income statement, statement of changes in stockholders' equity, balance sheet, and statement of cash flows for 2011.

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

d. Repeat Requirements a, b, and c for 2012.