Solution: A
Below is the transaction data in accounting equation
Working:
Below is the calculation of bad debt expense:
Solution: B
Below is the Income statement for Roth co.
Solution: C
Net Realizable Value:
Roth Service Co. experienced the following transactions for Year 1, its first year of operations: 1....
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...
Roth Service Co. experienced the following transactions for 2018, its first year of operations: Provided $72,000 of services on account. Collected $41,200 cash from accounts receivable. Paid $28,000 of salaries expense for the year. Roth adjusted the accounts using the following information from an accounts receivable aging schedule: Number of Days Past Due Amount Percent Likely to Be Uncollectible Allowance Balance Current $ 16,700 0.01 0-30 5,500 0.05 31-60 3,000 0.10 61-90 1,800 0.30 Over 90 days 3,800 0.50 Required...
Roth Service Co. experienced the following transactions for 2018, its first year of operations: Provided $68,000 of services on account. Collected $38,500 cash from accounts receivable. Paid $28,000 of salaries expense for the year. Roth adjusted the accounts using the following information from an accounts receivable aging schedule: Number of Days Past Due Amount Percent Likely to Be Uncollectible Allowance Balance Current $ 15,400 0.01 0-30 5,400 0.05 31-60 3,900 0.10 61-90 1,100 0.30 Over 90 days 3,700 0.50 Required...
Vulcan Service Co. experienced the following transactions for Year 1, its first year of operations: 1. Provided $70,000 of services on account. 2. Collected $42,000 cash from accounts receivable. 3. Pald $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 Allowance Balance Number of Days Past Due Current 0-30 31-60 61-90 Over 90 days Mount $20,720 1.000 1.960 1.680 2.240 Required a. Record...
Vulcan Service Co. experienced the following transactions for Year 1, its first year of operations 1. Provided $82,000 of services on account. 2. Collected $49,200 cash from accounts receivable. 3. Paid $28,000 of salaries expense for the year 4. Adjusted the accounts using the following information from an accounts receivable aging schedule Number of Days Past Due Percent Likely to Be Uncollectible .01 05 .10 .30 .50 Allowance Balance Current 0-30 31-60 61-90 Over 90 days Amount $24,272 1, 640...
Sage Inc. experienced the following transactions for Year 1, its first year of operations: Issued common stock for $110,000 cash. Purchased $205,000 of merchandise on account. Sold merchandise that cost $162,000 for $322,000 on account. Collected $290,000 cash from accounts receivable. Paid $185,000 on accounts payable. Paid $64,000 of salaries expense for the year. Paid other operating expenses of $80,000. Sage adjusted the accounts using the following information from an accounts receivable aging schedule: Number of Days Past Due Amount...
Sage Inc. experienced the following transactions for Year 1, its first year of operations: Issued common stock for $120,000 cash. Purchased $200,000 of merchandise on account. Sold merchandise that cost $160,000 for $318,000 on account. Collected $282,000 cash from accounts receivable. Paid $180,000 on accounts payable. Paid $62,000 of salaries expense for the year. Paid other operating expenses of $78,000. Sage adjusted the accounts using the following information from an accounts receivable aging schedule: Number of Days Past Due Amount...
Leach Inc. experienced the following events for the first two years of its operations: Year 1: 1. Issued $10,000 of common stock for cash. 2. Provided $100,000 of services on account. 3. Provided $31,000 of services and received cash. 4. Collected $69,000 cash from accounts receivable. 5. Paid $16,000 of salaries expense for the year. 6. Adjusted the accounting records to reflect uncollectible accounts expense for the year. Leach estimates that 7 percent of the ending accounts receivable balance will...
Roth Service Co. experienced the following transactions for Year 1, its first year of operations: Provided $82,000 of services on account.Collected $52,200 cash from accounts receivable.Paid $28,000 of salaries expense for the year.Roth adjusted the accounts using the following information from an accounts receivable aging schedule: Number of Days Past DueAmountPercent Likely to Be UncollectibleAllowance BalanceCurrent$16,3000.010-305,1000.0531-603,4000.1061-901,7000.30Over 90 days3,3000.50 RequiredOrganize the transaction data in accounts under an accounting equation.Prepare an income statement for Roth Service Co. for Year 1.What is the...
one multi step problem! thank you Holmes Cleaning Service began operation on January 1, 2018. The company experienced the following events for its first year of operations Events Affecting 2018 1. Provided $220,000 of cleaning services on account 2. Collected $165.000 cash from accounts receivable 3. Paid salaries of $34,000 for the year. 4. Adjusted the accounts to reflect management's expectations that uncollectible accounts expense would be $1,400. The expense was determined using the percent of revenue method. Required a....