Roth Service Co. experienced the following transactions for 2018, its first year of operations: Provided $72,000 of
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Question:
Roth Service Co. experienced the following transactions for 2018, its first year of operations:
- Provided $72,000 of services on account.
- Collected $41,200 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 | $ | 16,700 | 0.01 | |||
0-30 | 5,500 | 0.05 | ||||
31-60 | 3,000 | 0.10 | ||||
61-90 | 1,800 | 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 Co. for 2018.
- What is the net realizable value of the accounts receivable at December 31, 2018?
Organize the transaction data in accounts under an accounting equation. (Enter any decreases to account balances with a minus sign. If there is no effect on the Accounts Titles for Retained Earnings, leave the cell blank.)
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Prepare an income statement for Roth Service Co. for 2018.
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What is the net realizable value of the accounts receivable at December 31, 2018?
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Related Book For
Survey of Accounting
ISBN: 978-1259631122
5th edition
Authors: Thomas Edmonds, Christopher Edmonds, Philip Olds, Frances McNair, Bor Yi Tsay
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