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

1. Provided $78,000 of services on account.
2. Collected $46,800 cash from accounts receivable.
3. Paid $26,000 of salaries expense for the year.
4. 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	$23,088	0.01
0 to 30	1,560	0.05
31 to 60	2,184	0.10
61 to 90	1,872	0.30
Over 90 days	2,496	0.50

Required

1. Record the given transactions in general journal form and post to T-accounts.
2. Prepare the income statement for Vulcan Service Company for Year 1.
3. What is the net realizable value of the accounts receivable at December 31, Year 1?