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2. (Chapter 7) The Solo Company was started on January 1, Year 1. The following events occurred during Year 1 and Year 2. Year
2. (Chapter 7) The Solo Company was started on January 1, Year 1. The following events occurred during Year 1 and Year 2. Year 1 1. Provided $4,000 of services on account. 2. Collected $3,000 cash from accounts receivable. 3. Estimated uncollectible accounts expense to be 1.5% of Year 1 credit sales. Year 2 1. Wrote off $40 of accounts receivable that were deemed uncollectible. 2. Provided $6,500 of services on account. 3. Collected $5,400 cash from accounts receivable. 4. Received $5 from an uncollectible account that had been previously written off. Solo reinstated the account. 5. Recorded the $5 cash received from the receivable reinstated in Event No. 4. 6. Estimated uncollectible accounts expense to be 1% of Year 2 credit sales. Required Record the events using the horizontal financial statements model under the titles of the affected accounts. Record the initials "NA" under each heading not affected by a given event.
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