Faello Inc. experienced the following events for the first two years of its operations:
2013:
1. Provided $80,000 of services on account.
2. Provided $22,000 of services and received cash.
3. Collected $65,000 cash from accounts receivable.
4. Paid $24,000 of salaries expense for the year.
5. Adjusted the accounting records to reflect uncollectible accounts expense for the year. Faello estimates that 5 percent of the ending accounts receivable balance will be uncollectible.
2014:
1. Wrote off an uncollectible account of $620.
2. Provided $95,000 of services on account.
3. Provided $15,000 of services and collected cash.
4. Collected $90,000 cash from accounts receivable.
5. Paid $35,000 of salaries expense for the year.
6. Adjusted the accounts to reflect uncollectible accounts expense for the year. Faello estimates that 5 percent of the ending accounts receivable balance will be uncollectible.

Required
a. Record the 2013 events in general journal form and post them to T-accounts.
b. Prepare the income statement, statement of changes in stockholders’ equity, balance sheet, and statement of cash flows for 2013.
c. What is the net realizable value of the accounts receivable at December 31, 2013?
d. Repeat Requirements a, b, and c for 2014.