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Roth Service Company experienced the following transactions for Year 1, its first year of operations: 1. Provided $70,000 of services on account. 2. Collected $38,500 cash from accounts receivable. 3. Paid $30,000 of salaries expense for the year. 4. Roth adjusted the accounts using the following information from an accounts receivable aging schedule: Percent Likely to Be Number of Days Past Due Amount Uncollectible Current $16,700 0.01 0 to 30 5,100 0.05 31 to 60 4,000 0.10 61 to 90 1,900 0.30 Over 90 days 3,800 0.50 Required Allowance Balance a. Organize the transaction data in accounts under an accounting equation. b. Prepare an income statement for Roth Service Company for Year 1. c. What is the net realizable value of the accounts receivable at December 31, Year 1? 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. Note: Enter any decreases to account balances with a minus sign. Leave cells blank if no input is needed.

Roth Service Company experienced the following transactions for Year 1, its first year of operations: 1. Provided $70,000 of services on account. 2. Collected $38,500 cash from accounts receivable. 3. Paid $30,000 of salaries expense for the year. 4. Roth adjusted the accounts using the following information from an accounts receivable aging schedule: Percent Likely to Be Number of Days Past Due Amount Uncollectible Current $16,700 0.01 0 to 30 5,100 0.05 31 to 60 4,000 0.10 61 to 90 1,900 0.30 Over 90 days 3,800 0.50 Required Allowance Balance a. Organize the transaction data in accounts under an accounting equation. b. Prepare an income statement for Roth Service Company for Year 1. c. What is the net realizable value of the accounts receivable at December 31, Year 1? 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. Note: Enter any decreases to account balances with a minus sign. Leave cells blank if no input is needed.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Roth Service Company experienced the following transactions for Year 1, its first year of operations: 1. Provided $70,000 of services on account. 2. Collected $38,500 cash from accounts receivable. 3. Paid $30,000 of salaries expense for the year. 4. Roth adjusted the accounts using the following information from an accounts receivable aging schedule: Percent Likely to Be Number of Days Past Due Amount Uncollectible Current $16,700 0.01 0 to 30 5,100 0.05 31 to 60 4,000 0.10 61 to 90 1,900 0.30 Over 90 days 3,800 0.50 Required Allowance Balance a. Organize the transaction data in accounts under an accounting equation. b. Prepare an income statement for Roth Service Company for Year 1. c. What is the net realizable value of the accounts receivable at December 31, Year 1? 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. Note: Enter any decreases to account balances with a minus sign. Leave cells blank if no input is needed.
Transcribed Image Text:Roth Service Company experienced the following transactions for Year 1, its first year of operations: 1. Provided $70,000 of services on account. 2. Collected $38,500 cash from accounts receivable. 3. Paid $30,000 of salaries expense for the year. 4. Roth adjusted the accounts using the following information from an accounts receivable aging schedule: Percent Likely to Be Number of Days Past Due Amount Uncollectible Current $16,700 0.01 0 to 30 5,100 0.05 31 to 60 4,000 0.10 61 to 90 1,900 0.30 Over 90 days 3,800 0.50 Required Allowance Balance a. Organize the transaction data in accounts under an accounting equation. b. Prepare an income statement for Roth Service Company for Year 1. c. What is the net realizable value of the accounts receivable at December 31, Year 1? 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. Note: Enter any decreases to account balances with a minus sign. Leave cells blank if no input is needed.
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