effect of recognizing uncollected accounts on financial statement

TIMI receivables allowance method LO 7-2 LLUVIL BLLUUNILS on the financial statements: percent The following information applies to the questions displayed below. Leach Inc. experienced the following events for the first two years of its operations: Year 1: 1. Issued $27,000 of common stock for cash. 2. Provided $96,700 of services on account. 3. Provided $53,000 of services and received cash. 4. Collected $86,000 cash from accounts receivable. 5. Paid $55.000 of salaries expense for the year. 6. Adjusted the accounting records to reflect uncollectible accounts expense fonthe year. Leach estimates that 5 of the ending accounts receivable balance will be uncollectible. 7. Closed the revenue account 8. Closed the expense account. Year 2 1. Wrote off an uncollectible account for $820. 2. Provided $105,000 of services on account. 3. Provided $49.000 of services and collected cash. 4. Collected $98.000 cash from accounts receivable! 5. Paid $82.000 of salaries expense for the year. 6. Adjusted the accounts to reflect uncollectible accounts expense for the year. Leach estimates that 5 percent of th ending accounts receivable balance will be uncollectible. Kercise 7-7A Part b Required information LEACH INC. Income Statement For the Year Ended December 31. Year 1 Operating expenses 16:39 Total operating expenses LEACHING! Statement of Changes in Stockholders Equity For the Year Ended December 31. Year 1 ||||||||||| |||| Total stockholders equity Required information Balance Sheet As of December 31, Year 1 Assets 46.01 Total assets Liabilities Stockholders' equity Total stockholders equity Total liabilities and stockholders' equity LEACH INC. Statement of Cash Flows For the Year Ended December 31, Year 1 Cash flow from operating activities Net cash flow from operating activities Cash flows from investing activities Cash flows from financing activities Net change in cash