King Service Co. experienced the following transactions for 2009, its first year of operations:

1. Provided \($66,000\) of services on account.

2. Collected \($42,000\) cash from accounts receivable.

3. Paid \($26,000\) of salaries expense for the year.

4. King adjusted the accounts using the following information from an accounts receivable aging schedule:

Required:

a. Organize the information in accounts under an accounting equation.

b. Prepare the income statement for King Service Co. for 2009.

c. What is the net realizable value of the accounts receivable at December 31, 2009?

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Number of Days Percent Likely to Past Due Amount Be Uncollectible Current $16,000 .01 0-30 3,000 .05 31-60 2,000 .10 61-90 1,000 .30 Over 90 days 2,000 .50 Allowance Balance