Problem 7-20A Accounting for uncollectible accounts: percent of receivables allowance method LO 7-2, 7-3 [The following information applies to the questions displayed below.) Roth Inc. experienced the following transactions for Year 1, its first year of operations: 1. Issued common stock for $80,000 cash. 2. Purchased $230,000 of merchandise on account. 3. Sold merchandise that cost $150,000 for $298,000 on account 4. Collected $248,000 cash from accounts receivable. 5. Paid $215,000 on accounts payable. 6. Paid $64,000 of salaries expense for the year 7. Paid other operating expenses of $53,000 8. Roth adjusted the accounts using the following information from an accounts receivable aging schedule: Allowance Balance Number of Days Past Due Current 3-30 31-60 61-90 Over 90 days Amount $30,000 12,500 2,500 2,500 2,500 Percent likely to Be Uncollectible 0.01 0.05 0.10 0.20 0.50 6. Paid $64,000 of salaries expense for the year. 7. Paid other operating expenses of $53,000. 8. Roth 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 Amount $30,000 12,500 2,500 2,500 2,500 Percent likely to Be Uncollectible 0.01 0.05 0.19 @.20 0.50 Problem 7-20A Parte c. What is the net realizable value of the accounts receivable at December 31, Year 1? Net realizable value