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Exerclse 7.7A (Algo) Effect of recognlzing uncollectible accounts on the financlol statements: percent of recelvables allowance method LO 7.2 [The followng information applies to the questions displayed below] Leach Incorporated experlenced the following events for the first two years of its operations. Year 1: 1. Issued $13,000 of common stock for cash. 2 Provided $81,300 of services on account. 3. Provided $39,000 of services and recelved cash. 4. Collected $72,000 cash from accounts recelvable 5. Paid $41,000 of salaries expense for the year 6. Adfusted the accounting records to reflect uncollectible accounts expense for the year Leach estimates that 5 percent of the ending accounts recelvable balance will be uncollectible 7. Closed the revenue account. 8. Closed the expense accounts. Year 2 1. Wrote off an uncollecuble account for $800 2. Provided $91,000 of services on account. 3. Provded $35,000 of services and collected cash. 4. Collected $84,000 cash from accounts recevable. 5. Paid $68,000 of salanes expense for the year. 6. Adjusted the accounts to reflect uncollectible accounts experise for the yest Leach estinates that 5 percent of the ending accounts recelvable balance will be uncollectible. 7. Cloced the revenue account. 8. Closed the expense accounts. Exerclse 7.7A (Algo) Part b b. Prepare the income stotement, statement of changes in stockholders' equity, balance sheet, and statemert of cash flows for Year t Complete this question by entering your answers in the tabs below. Prepare the incoene statement for Yoar 1. Prepare the statement of changes in stockholders' equity for Year 1. Prepare the balance sheet for Vear 1 . (Enter amounts to be deducted with a minus sign. Complete this question by entering your answers in the tabs below. Prepare the statement of cash flows for Vear 1 . (Enter cash outflows with a minu