Question
eserdise 7-TA Fiftech recosticing uncollectible accounts on the financial statements: percent of receivables allowance method Least ne. experienced the following events for the fist two
eserdise 7-TA Fiftech recosticing uncollectible accounts on the financial statements:
percent of receivables allowance method
Least ne. experienced the following events for the fist two years of its operations:
Year 1:
- Isued $10,000 of common stock for cash.
- Provided $78,000 of services on account.
3, Provided $36,000 of services and received cash.
1. Collected $69,000 cash from accounts receivable.
Paid $38,000 of salaries expense for the year.
6. Adjusted the accounting records to reflect uncollectible accounts expense for the year. Leach estimates that 5 percent of the ending accounts receivable balance will be uncollectible.
Year 2:
- Wrote off an uncollectible account for $650.
- Provided $88,000 of services on account.
- Provided $32,000 of services and collected cash
- Collected $81,000 cash from accounts receivable
- Paid $65,000 of salaries expense for the yest.
- Adjusted the accounts to reflect uncollectel acaggnses sxpeose for the ger Las 5 percent of the ending accounts receivable Relents wili in piecellester
Required
- Organize the transaction data in accounts under an accounting equatios.
- Prepare the income statement, statement of changes in stockhoiders eguicy, balanee sheet, and statement of cash flows for Year 1.
- What is the net realizable value of the accounts receivable at December 31, Year 1?
- Repeat Requirements a, b, and c for Year 2.
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