Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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:

  1. Provided $70,000 of services on account.
  2. Collected $39,200 cash from accounts receivable.
  3. Paid $26,000 of salaries expense for the year.
  4. 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

  1. Organize the transaction data in accounts under an accounting equation.
  2. Prepare an income statement for Roth Service Co. for 2018.
  3. What is the net realizable value of the accounts receivable at December 31, 2018?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Im A Auditor If You Dont Want A Sarcastic Answer Dont Ask A Stupid Question

Authors: Tim Hansen

1st Edition

B088Y3ZP2D, 979-8618443227

More Books

Students also viewed these Accounting questions

Question

What are the objectives of job evaluation ?

Answered: 1 week ago

Question

Write a note on job design.

Answered: 1 week ago

Question

Compute the derivative of f(x)cos(-4/5x)

Answered: 1 week ago

Question

Discuss the process involved in selection.

Answered: 1 week ago