Vulcan Service Co. experienced the following transactions for 2016, its first ye

Question

Vulcan Service Co. experienced the following transactions for 2016, its first year of operations: 1. Provided $82,000 of services on account. 2. Collected $49,200 cash from accounts receivable 3. Paid $32,000 of salaries expense for the year. 4. Adjusted the accounts using the following information from an accounts receivable aging schedule Percent Likely to Be Uncollectible 01 05 10 30 50 Allowance Balance Number of Days Past Due Current 0-30 31-60 61-90 Over 90 days Amount $24,272 1,640 2,296 1,968 2,624 (Round your intermediate calculations and final answers to nearest whole dollar.) Required a. Record the above transactions in general journal form and post to T-accounts. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 4 Provided $82,000 of services on account. Note: Enter debits before credits Transaction General Journal Debit Credit Record entry Clear entry View general journal

Explanation / Answer

1 Accounts Recivable $            82,000.00 To Service Revenue $                   82,000.00 2 Cash $            49,200.00 To Accounts Recivable $                   49,200.00 3 Salaries Expense $            32,000.00 Cash $                   32,000.00 4 Uncollectible Account Expense $               2,457.00 Allowance for Doubtful debt $                     2,457.00 No. of Days Amount %age likely to be Allowanc Balance Past Due Unollectible Current 24272 0.01 242.72 0-30 1640 0.05 82 31-60 2296 0.1 229.6 61-90 1968 0.3 590.4 Ovr90 2624 0.5 1312 2456.72 Cash Beginning Balance $                            -   Salary Expense (3) $   32,000.00 Accounts Receiveable(2) $            44,400.00 Ending Balance $          (32,000.00) Service revenue Beginning Balance $                            -   Accounts Receiveable(1) $   82,000.00 Ending Balance $   82,000.00 Accounts Receivable Beginning Balance Cash (2) $   49,200.00 Sales Revenue(1) $            82,000.00 Ending Balance $   32,800.00 Salary Expense Beginning Balance Cash $            32,000.00 Ending Balance $            32,000.00 Allowance for Doubt ul Debt Beginning Balance Uncolectible Account Exp $      2,457.00 Ending Balance $      2,457.00 Uncolectible Account Exp Beginning Balance Allowance for Doubt ul Debt $               2,457.00 Closing Balance $               2,457.00 b Vulcan Service Inc Income Statement Service Reveue 82000 Operating Expense Salaries Expense $            32,000.00 Uncolectible Account Exp $               2,457.00 Total Operating Expense $                   34,457.00 Net Income $                   47,543.00 c Net Realizable value of accounts receivable Ending Balance of ACcountsReceivable $                   32,800.00 Less: Allowance for Doubtful Debt $                   (2,457.00) $                   30,343.00

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