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Roth Service Co. experienced the following transactions for 2018, its first year of operations: Provided $70,000 of services on account. Collected $39,200 cash from accounts
Roth Service Co. experienced the following transactions for 2018, its first year of operations:
- Provided $70,000 of services on account.
- Collected $39,200 cash from accounts receivable.
- Paid $26,000 of salaries expense for the year.
- 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 | $ | 17,000 | 0.01 | |||
0-30 | 5,500 | 0.05 | ||||
31-60 | 3,400 | 0.10 | ||||
61-90 | 1,100 | 0.30 | ||||
Over 90 days | 3,800 | 0.50 | ||||
Required
- Organize the transaction data in accounts under an accounting equation.
- Prepare an income statement for Roth Service Co. for 2018.
- What is the net realizable value of the accounts receivable at December 31, 2018?
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