Question

Roth Service Co. experienced the following transactions for 2018, its first year of operations 1. Provided $74,000 of services on account 2 Collected $43,700 cash from accounts receivable. 3. Paid $26,000 of salaries expense for the year. 4. Roth adjusted the accounts using the following information from an accounts receivable aging schedule: Allowance Balance Number of Days Past Due Current 0-30 31-60 61-90 Over 90 days Amount $15,600 5,300 3,500 2,000 3,900 Percent Likely to Be Uncollectible 0.01 8.05 0.10 0.30 0.50 Required a. Organize the transaction data in accounts under an accounting equation. b. Prepare an income statement for Roth Service Co. for 2018 c. What is the net realizable value of the accounts receivable at December 31, 2018? Complete this question by entering your answers in the tabs below. Required A Required B Required C organize the transaction data in accounts under an accounting equation. (Enter any decreases to account balances with a minus there is no effect on the Accounts Titles for Retained Earnings, leave the cell blank.) ROTH SERVICE CO.

Answer 1

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solution : Assets Event C Allowance = Liability & Equity Retained * Earnings ht Accants Receivable - Acct. N4 $74ooo Revo Q. NA $43700 $(26000) $ 74000 NA $ (43700) NA NA NA NA 3. NA $ (26000) NA sal. Expo un collo 4. NA NA $3321" NA $13322 $44679 EXP" Bat. 917200 + $ 30300 - $3326 - Amount percent likely to be uncollectible Allowance Balance. 0.01 Working Note : Nooof days past doe Current 0-30 31-60 61-90 over 90 days 15) 4) $ 15600 5300 $3500 $2000 $3900 0:05 0.10 $ 156 $265 $350 $ 600 $1950 0.30 ooso $332)

Roth service con Income Statement For the year Ended December 31, 2018 Amount $74000 particolars Amount Service Revenue. (A) Expenses operating : - Salaries expenses $ 26000 - uncollectible Accounts Total Operating expenses (B) Net income (A-B) 9 8321 expense. $29321 $44679 ② Realizable Net value of the accounts at receivable December 31, 2018 : Accounts Receivable & 30300 Less: - Allowance for Doubtful on Debes Jaccants $(3321) Net Realizable value $26979