Chapter 5 Accounts Receivable 1 1 Part 1 of 5 points P Required information [The following information applies to the questions displayed below.) The following transactions apply to Jova Company for Year 1, the first year of operation: 1. Issued $10,500 of common stock for cash. 2. Recognized $65,500 of service revenue earned on account. 3. Collected $58,400 from accounts receivable. 4. Paid operating expenses of $35,000. 5. Adjusted accounts to recognize uncollectible accounts expense. Jova uses the allowance method of accounting for uncollectible accounts and estimates that uncollectible accounts expense will be 2 percent of sales on account The following transactions apply to Jova for Year 2: 1. Recognized $73,000 of service revenue on account 2. Collected $66,400 from accounts receivable. 3. Determined that $910 of the accounts receivable were uncollectible and wrote them off. 4. Collected $200 of an account that had previously been written off 5. Paid $48,600 cash for operating expenses. 6. Adjusted the accounts to recognize uncollectible accounts expense for Year 2. Jova estimates uncollectible accounts expense will be 1.0 percent of sales on account. Required Complete the following requirements for Year 1 and Year 2. Complete all requirements for Year 1 prior to beginning the requirements for Year 2 a. Identify the type of each transaction (asset source, asset use, asset exchange, or claims exchange). Mc Previ 1 2 3 5 5 Next > Check my work 1 Part 1 of 5 1 points 6. Adjusted the accounts to recognize uncollectible accounts expense for Year 2. Jova estimates uncollectible accounts expense will be 10 percent of sales on account Required Complete the following requirements for Year 1 and Year 2. Complete all requirements for Year 1 prior to beginning the requirements for Year 2 a. Identify the type of each transaction (asset source, asset use, asset exchange, or claims exchange) Event No. Type of Transaction Pre References Year 1 Mc Graw Hill 2 3 4 5. Year 2 T 2 3. 48. 46. 5. 6 9 Check my