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Butler Service Co. experienced the following transactions for 2013, its first year of operations:
1. Provided $84,000 of services on account. 2. Collected $71,000 cash from accounts receivable.3. Paid $35,000 of salaries expense for the year. 4. Adjusted the accounts using the following information from an accounts receivable aging schedule:
Required:
a. Record the above transactions in general journal form and post to T-accounts. b. Prepare the income statement for Butler Service Co. for 2013. c. What is the net realizable value of the accounts receivable at December 31,2013?
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