Vulcan Service Co. experienced the following transactions for Year 1, its first year of operations:...
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Accounting
Vulcan Service Co. experienced the following transactions for Year 1, its first year of operations:
Provided $84,000 of services on account.
Collected $50,400 cash from accounts receivable.
Paid $30,000 of salaries expense for the year.
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
$
24,864
.01
0-30
1,680
.05
31-60
2,352
.10
61-90
2,016
.30
Over 90 days
2,688
.50
Requireda. Record the above transactions in general journal form and post to T-accounts. b. Prepare the income statement for Vulcan Service Co. for Year 1. c. What is the net realizable value of the accounts receivable at December 31, Year 1?
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