Exerclse $7-8$A $($Algo$)$ Accounting for uncollectlble accounts: percent of recelvables allowance method LO

$7-2,7-3$

Vulcan Service Company experienced the following transactions for Year $1,$ its first year of operations:

Provided $$70,000$ of services on account.

Collected $$42,000$ cash from accounts receivable.

Paid $$32,000$ of salaries expense for the year.

Adjusted the accounts using the following information from an accounts receivable aging schedule:

Requlred

a$.$ Record the given transactions in general journal form and post to T$-$accounts.

b$.$ Prepare the income statement for Vulcan Service Company 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 A

General

Journal

Record the given 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.$)$

Journal entry worksheet

Provided $$70,000$ of services on account.

Note: Enter debits before credits.