Required information 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 $250,000 of merchandise on account 3. Sold merchandise that cost $162,000 for $322,000 on account. 4. Collected $270,000 cash from accounts receivable. 5. Pald $235.000 on accounts payable. 6. Pald $52,000 of salaries expense for the year 7. Pald other operating expenses of $41,000 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 $31,200 13,000 2.600 2,600 2,600 Percent likely to Beyoncollectible 0.01 0.05 0.10 0.20 8.50 Required a. Record the above transactions in general journal form and post to T-accounts. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet B C D E F Record entry for issuance of common stock. Note: Enter debits before credits General Journal Event 01 Debit Credit Het Content Val Required information Cash Common Stock Beg. Bal Beg. Bal. End. Bal. End, Bal Accounts Receivable Sales Revenue Beg Bal Beg. Bat. End. Bal. End Bal Allowance for Doubtful Accounts Cost of Goods Sold Bog, Bal Bog, Bal End Bal End. Bal Merchandise Inventory Operating Expenses Beg Bal Beg Bal Required information End. Bal. End. Bal. Allowance for Doubtful Accounts Cost of Goods Sold Beg. Bal. Beg. Bal End. Bal. End. Bal Merchandise Inventory Operating Expenses Beg Bal Beg. Bal End. Bal. End. Bal Accounts Payable Salaries Expense Beg. Bal Bog. Bal + End. Bal End, Bal Uncollectible Accounts Expense Bog. Bol 1. Issued common stock for $80,000 cash. 2. Purchased $250,000 of merchandise on account. 3. Sold merchandise that cost $162,000 for $322,000 on account. 4. Collected $270,000 cash from accounts receivable. 5. Paid $235,000 on accounts payable. 6. Paid $52,000 of salaries expense for the year. 7. Paid other operating expenses of $41,000. 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 $31,200 13,000 2,600 2,600 2,600 Percent likely to Be Uncollectible 0.01 0.05 0.10 9.20 0.50 Problem 7-20A Partc c. What is the net realizable value of the accounts receivable at December 31, Year 1? Net realizable value