Vulcan Service Co. experienced the following transactions for 2016, its first year of operations:

1. Provided $91,000 of services on account.

2. Collected $72,000 cash from accounts receivable.
3. Paid $36,000 of salaries expense for the year.

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

Required
a. Record the above transactions in general journal form and post to T-accounts.
b. Prepare the income statement for Vulcan Service Co. for 2016.
c. What is the net realizable value of the accounts receivable at December 31, 2016?

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Number of Days Percent Likely to Be Uncollectible Allowance Balance Past Due Amount Current 0-30 31-60 61-90 Over 90 days $7,800 4,500 2,000 2,200 2,500 01 05 10 .20 .50