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 $74,000 of services on account.
2. Collected $44,400 cash from accounts receivable.
3. Paid $30,000 of salaries expense for the year.
4. Adjusted the accounts using the following information from an accounts receivable aging schedule:

Number of Days Past Due	Amount			Percent Likely to Be Uncollectible	Allowance Balance
Current	$	21,904		.01
0-30		1,480		.05
31-60		2,072		.10
61-90		1,776		.30
Over 90 days		2,368		.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?