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

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Vulcan Service Co. experienced the following transactions for Year 1, 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:

Number of Days Past Due Current Percent Likely to Be Uncollectible Allowance Balance Amount .01 $7,800 4,500 .05 31-60 6


Required
a. Organize the transaction data in accounts under an accounting equation.
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?

Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...
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Related Book For  book-img-for-question

Introductory Financial Accounting for Business

ISBN: 978-1260299441

1st edition

Authors: Thomas Edmonds, Christopher Edmonds

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