Roth Service Company experienced the following transactions for Year 1, its first year of operations: Provided $72,000 of services on account. Collected $41,000 cash from accounts receivable. Paid $28,000 of salaries expense for the year. Roth 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 $16, 800 0.01 0 to 30 5,900 0.05 31 to 60 3,400 0.10 61 to 90 1, 100 0.30 Over 90 days 3,800 0.50 Required Organize the transaction data in accounts under an accounting equation. Prepare an income statement for Roth Service Company for Year 1. What is the net realizable value of the accounts receivable at December 31, Year 1 ?
Roth Service Company experienced the following transactions for Year 1, its first year of operations: Provided $72,000 of services on account. Collected $41,000 cash from accounts receivable. Paid $28,000 of salaries expense for the year. Roth 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 $16, 800 0.01 0 to 30 5,900 0.05 31 to 60 3,400 0.10 61 to 90 1, 100 0.30 Over 90 days 3,800 0.50 Required Organize the transaction data in accounts under an accounting equation. Prepare an income statement for Roth Service Company for Year 1. What is the net realizable value of the accounts receivable at December 31, Year 1 ?
Century 21 Accounting General Journal
11th Edition
ISBN:9781337680059
Author:Gilbertson
Publisher:Gilbertson
Chapter14: Accounting For Uncollectible Accounts Receivable
Section: Chapter Questions
Problem 1AP
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