Vulcan Service Company experienced the following transactions for Year 1, its first year of operations:

Provided $80,000 of services on account.

Collected $48,000 cash from accounts receivable.

Paid $26,000 of salaries expense for the year.

Adjusted the accounts using the following information from an accounts receivable aging schedule:

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

Prepare the income statement for Vulcan Service Company for Year 1.

What is the net realizable value of the accounts receivable at December 31, Year 1?

NumberofDaysPastDueCurrent0to3031to6061to90Amount$23,6801,6002,2401,920PercentLikelytoBeUncollectible0.010.050.300.50AllowanceBalance0.10