Tyler Service Co. experienced the following transactions for 2013, its first year of operations:
1. Provided $86,000 of services on account.
2. Collected $72,000 cash from accounts receivable.
3. Paid $39,000 of salaries expense for the year.
4. Tyler 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 T-accounts.
b. Prepare the income statement for Tyler Service Co. for 2013.
c. What is the net realizable value of the accounts receivable at December 31,2013?

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Number of Days Percent Likely to Be Uncollectible Allowance Balance Past Due Amount Current 0-30 31-60 61-90 Over 90 days S7,500 2,000 1,500 1,000 2,000 01 05 10 .30 50