Reference no: EM132532754

Roth Inc. 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.

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      $10,000             0.01

0-30                      2,000               0.05

31-60                      1,200               0.10

61-90                      500                  0.20

Over 90 days            300                  0.50

Required

Question a. Record the above transactions in general journal form and post to T-accounts