Exercise 7-8A Accounting for uncollectible accounts: percent of receivables allowance method LO 7-2, 7-3 Vulcan Service Co. experienced the following transactions for Year 1, its first year of operations: 1. Provided $80,000 of services on account. 2. Collected $48,000 cash from accounts receivable. 3. Paid $32,000 of salaries expense for the year. 4. Adjusted the accounts using the following information from an accounts receivable aging schedule: Allowance Balance Number of Days Past Due Current 0-30 31-60 61-90 Over 90 days Percent Likely to Be Uncollectible .01 .05 Amount $23, 680 1,600 2,240 1,920 2,560 . 10 .30 .50 Required a. Record the above transactions in general journal form and post to T-accounts. 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? Complete this question by entering your answers in the tabs below. Required Required Required Required A General AT B Record the above transactions in general journal form. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your intermediate calculations and final answers to nearest whole dollar.) View transaction list View journal entry worksheet Credit No Transaction General Journal A 1 Accounts receivable Service revenue Debit 80,000 80,000 B 2 48,000 Cash Accounts receivable 48,000 C 3 32,000 Salaries expense Cash 32,000 D 4 2,397 Uncollectible accounts expense Allowance for doubtful accounts 2,397 Required A General Journal Required AT Complete this question by entering your answers in the tabs below. Required Required Required Required A General AT B C Record the above transactions in post to T-accounts. (Round your intermediate calculations and final answers to nearest whole dollar.) Cash Service Revenue Beg. Bal. Beg. Bal. End. Bal. End. Bal. Accounts Receivable Salaries Expense Beg. Bal. Beg. Bal. End. Bal. End. Bal. Uncollectible Acctounts Expense Allowance for Doubtful Accounts Beg. Bal. Beg. Bal. End. Bal. End. Bal. Complete this question by entering your answers in the tabs below. Required Required Required Required A General AT B Prepare the income statement for Vulcan Service Co. for Year 1. (Round your intermediate calculations and final answers to nearest whole dollar.) VULCAN SERVICE CO. Income Statement For the Year Ended December 31, Year 1 Operating expenses Total operating expenses 0 0 $ Complete this question by entering your answers in the tabs below. Required Required Required Required A General AT B What is the net realizable value of the accounts receivable at December 31, Year 1? (Round your intermediate calculations and final answer to nearest whole dollar.) Net realizable value
