1.

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 $33,000 of services and received cash. 4. Collected $67,000 cash from accounts receivable. 5. Paid $18,000 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 be uncollectible. Year 2: 1. Wrote off an uncollectible account for $650 2. Provided $120,000 of services on account 3. Provided $30,000 of services and collected cash. 4. Collected $102,000 cash from accounts receivable. 5. Paid $24,000 of salaries expense for the year 6. Adjusted the accounts to reflect uncollectible accounts expense for the year Leach estimates that 7 percent of the ending accounts receivable balance will be uncollectible. c. What is the net realizable value of the accounts receivable at December 31, Year 1? 4cs, of 7H Next > Prev