Vulcan Service Co. experienced the following transactions for Year 1, its first year of operations:
1. Provided $91,000 of services on account.
2. Collected $72,000 cash from accounts receivable.

3. Paid $36,000 of salaries expense for the year.
4. Adjusted the accounts using the following information from an accounts receivable aging schedule:

Required
a. Organize the transaction data in accounts under an accounting equation.
b. Prepare the income statement for Vulcan Service Co. for Year 1.
c. What is the net realizable value of the accounts receivable at December 31, Year 1?

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Number of Days Past Due Current Percent Likely to Be Uncollectible Allowance Balance Amount .01 $7,800 4,500 .05 31-60 61-90 Over 90 days .10 .20 .50 2,000 2,200 2,500