Roth Inc. experienced the following transactions for Year 1, its first year of operations: Issued common stock for $80,000 cash. Purchased $230,000 of merchandise on account. Sold merchandise that cost $152,000 for $302,000 on account. Collected $248,000 cash from accounts receivable. Paid $215,000 on accounts payable. Paid $58,000 of salaries expense for the year. Paid other operating expenses of $47,000. Roth 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 $ 32,400 0.01

030 13,500 0.05

3160 2,700 0.10

6190 2,700 0.20

Over 90 days 2,700 0.50

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

b. Prepare the income statement, statement of changes in stockholders equity, balance sheet, and statement of cash flows for Roth Inc. for Year 1.