Roth Service Co. experienced the following transactions for 2018, its first year of operations:

1. Provided $72,000 of services on account.
2. Collected $41,200 cash from accounts receivable.
3. Paid $28,000 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	$	16,700		0.01
0-30		5,500		0.05
31-60		3,000		0.10
61-90		1,800		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?

Organize the transaction data in accounts under an accounting equation. (Enter any decreases to account balances with a minus sign. If there is no effect on the Accounts Titles for Retained Earnings, leave the cell blank.)

ROTH SERVICE CO.
Horizontal Statements Model
Event	Assets					=	Liabilities	+	Equity	Accounts Titles for Retained Earnings
	Cash	+	Accounts Receivable	–	Allowance				Retained Earnings
1.		+		–		=		+
2.		+		–		=		+
3.		+		–		=		+
4.		+		–		=		+
Bal.	0	+	0	–	0	=	0	+	0

Prepare an income statement for Roth Service Co. for 2018.

ROTH SERVICE CO.
Income Statement
For the Year Ended December 31, 2018
Operating expenses
Total operating expenses		0

What is the net realizable value of the accounts receivable at December 31, 2018?

	Net realizable value