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 $225,000 of merchandise on account. 3. Sold merchandise that cost $152.000 for $302.000 on account. 4. Collected $250.000 cash from accounts receivable. 5. Paid $210,000 on accounts payable. 6. Paid $58,000 of salaries expense for the year. 7. Paid other operating expenses of $47.000. 8. Roth adjusted the accounts using the following information from an accounts receivable aging schedule: Allowance Balance Number of Days Past Due Current 8-30 31-60 61-9e Over 90 days Amount $31,280 13,00 2,689 2,600 2,689 Percent Likely to Be Uncollectible 0.01 0.05 Q.10 9.29 8.50 Problem 7-20A Part b b. Prepare the income statement, statement of changes in stockholders' equity, and balance sheet for Roth Inc. for Year 1. (Balance Sheet only: Items to be deducted must be Indicated with a minus sign.) ROTH, INC. Income Statement For the Year Ended Year 1 0 Operating expenses Total operating expenses 0 S 0 ROTH, INC. Statement of Changes in Stockholders' Equity For the Year Ended Year 1 S 0 0 Total stockholders' equity S 0 ROTH, INC. Balance Sheet As of Year 1 Assets 0 Total assets S 0 Liabilities Stockholders' equity 0 Total stockholders' equity Total liabilities and stockholders' equity s 0