Required information [The following information applies to the questions displayed below] Roth Incorporated experienced the following transactions for year 1, its first year of operations: 1. Issued common stock for $50,000 cash. 2. Purchased $140,000 of merchandise on account 3. Sold merchandise that cost $110,000 for $250,000 on account. 4. Collected $236,000 cash from accounts receivable. 5. Paid $118,000 on accounts payable. 6. Paid $50,000 of salaries expense for the year 7. Paid other operating expenses of $28,000. 8. Roth adjusted the accounts using the following information from an accounts receivable aging schedule. Number of Days Past Due Current 0 to 30 31 to 60 61 to 90 Over 90 days Amount $10,000 Net realizable value 2,000 1,200 500 300 Percent Likely to be Uncollectible 0.01 0.05 0.10. 0.20 0.50 Allowance Balance c. What is the net realizable value of the accounts receivable at December 31, Year 1?
Required information [The following information applies to the questions displayed below] Roth Incorporated experienced the following transactions for year 1, its first year of operations: 1. Issued common stock for $50,000 cash. 2. Purchased $140,000 of merchandise on account 3. Sold merchandise that cost $110,000 for $250,000 on account. 4. Collected $236,000 cash from accounts receivable. 5. Paid $118,000 on accounts payable. 6. Paid $50,000 of salaries expense for the year 7. Paid other operating expenses of $28,000. 8. Roth adjusted the accounts using the following information from an accounts receivable aging schedule. Number of Days Past Due Current 0 to 30 31 to 60 61 to 90 Over 90 days Amount $10,000 Net realizable value 2,000 1,200 500 300 Percent Likely to be Uncollectible 0.01 0.05 0.10. 0.20 0.50 Allowance Balance c. What is the net realizable value of the accounts receivable at December 31, Year 1?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Required information
[The following information applies to the questions displayed below]
Roth Incorporated experienced the following transactions for year 1, its first year of operations:
1. Issued common stock for $50,000 cash.
2. Purchased $140,000 of merchandise on account
3. Sold merchandise that cost $110,000 for $250,000 on account
4. Collected $236,000 cash from accounts receivable.
5. Paid $118,000 on accounts payable.
6. Paid $50,000 of salaries expense for the year
7. Paid other operating expenses of $28,000.
8. Roth adjusted the accounts using the following information from an accounts receivable aging schedule.
Number of Days Past
Due
Current
0 to 30
31 to 60
61 to 90
Over 90 days
Amount
$10,000
Net realizable value
2,000
1,200
500
300
Percent Likely to be
Uncollectible
0.01
0.05
0.10.
0.20
0.50
Allowance
Balance
c. What is the net realizable value of the accounts receivable at December 31, Year 1?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fdb6b2fd1-61d2-4934-9351-51a668f5d5b0%2Fb72d38a8-4582-499e-a24c-e047d4aaafc3%2Fbnitb8m_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information
[The following information applies to the questions displayed below]
Roth Incorporated experienced the following transactions for year 1, its first year of operations:
1. Issued common stock for $50,000 cash.
2. Purchased $140,000 of merchandise on account
3. Sold merchandise that cost $110,000 for $250,000 on account
4. Collected $236,000 cash from accounts receivable.
5. Paid $118,000 on accounts payable.
6. Paid $50,000 of salaries expense for the year
7. Paid other operating expenses of $28,000.
8. Roth adjusted the accounts using the following information from an accounts receivable aging schedule.
Number of Days Past
Due
Current
0 to 30
31 to 60
61 to 90
Over 90 days
Amount
$10,000
Net realizable value
2,000
1,200
500
300
Percent Likely to be
Uncollectible
0.01
0.05
0.10.
0.20
0.50
Allowance
Balance
c. What is the net realizable value of the accounts receivable at December 31, Year 1?
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