King Service Co. experienced the following transactions for 2011, its first year of operations:
1. Provided \(\$ 66,000\) of services on account.
2. Collected \(\$ 42,000\) cash from accounts receivable.
3. Paid \(\$ 26,000\) of salaries expense for the year.
4. King 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 them to \(\mathrm{T}\)-accounts.

b. Prepare the income statement for King Service Co. for 2011.

c. What is the net realizable value of the accounts receivable at December 31,2011 ?

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Number of Days Past Due Amount Be Uncollectible Percent Likely to Allowance Balance Current $16,000 .01 0-30 3,000 .05 31-60 2,000 .10 61-90 1,000 .30 Over 90 days 2,000 .50