3.3 Calculation of Allowance for Uncollectibles using Percent of Revenue Method
Background Information: Donald Duck and Friends began operations on January 1, 2017
The following events occurred during the year
1	Provided lawn services on account for $90,000
2	Collected $82,000 cash from accounts receivable
3	Paid salaries to Mickey for the year of $30,000
4	Company estimates 2% of the on account revenue to be uncollectible based on percent of revenue method.

b) Prepare an income statement for 2017
Donald Duck and Friends
Income Statement
For the Year Ended December 31,2017
Operating Expense
Net Income						$ -