Ming Inc. experienced the following transactions for 2011, its first year of operations:
1. Issued common stock for \(\$ 50,000\) cash.
2. Purchased \(\$ 145,000\) of merchandise on account.
3. Sold merchandise that cost \(\$ 85,000\) for \(\$ 136,000\) on account.

4. Collected \(\$ 115,000\) cash from accounts receivable.
5. Paid \(\$ 85,000\) on accounts payable.
6. Paid \(\$ 25,000\) of salaries expense for the year.
7. Paid other operating expenses of \(\$ 15,000\).
8. Ming 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 Ming Inc. for 2011.

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

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Number of Days Percent Likely to Be Uncollectible Allowance Balance Past Due Current Amount 0-30 $12,000 4,000 .01 .05 31-60 2,000 .10 61-90 2,000 .20 Over 90 days 1,000 .50