As of January 1, Year 5, the accounting records for Antique Art, Inc. (AAI) showed Cash of $130,000, Common Stock of $100,000, and Retained Earnings of $30,000. During Year 5, AAI experienced the following accounting events:
1. AAI purchased merchandise inventory for $94,000 cash.
2a. AAI recognized revenue from selling inventory for $104,000 on account.
2b. AAI recognized $76,000 of cost of goods sold.
3. AAI paid $28,000 cash to purchase a warehouse. The warehouse had a five-year useful life and a $4,000 salvage value.
4. On May 1, Year 5, AAI acquired $30,000 cash by issuing a note to the State Bank. The note had a
6 percent annual interest rate and a one-year term to maturity.
5. AAI recognized accrued interest expense for the note issued in Event 4.
6. AAI estimated its uncollectible accounts expense to be 5 percent of credit sales.
7. AAI recognized depreciation expense associated with the warehouse purchased in Event 3.

Required
a. Record the events in a general journal.
b. Determine the net realizable value of receivables that will appear on the December 31, Year 5, balance sheet.
c. Determine the book value of the warehouse that will appear on the December 31, Year 5, balance sheet.