Exercise 2-4A (Algo) Effect of collecting accounts receivable on the accounting equation LO 2-2, 2-4 Holloway Company started operations on January 1, Year 1. During Year 1, Holloway earned $4,000 of service revenue and collected $3,400 cash from accounts receivable. Required: Based on this information alone, determine the following for Holloway Company. (Hint: Record the events in a horizontal financial statements model before satisfying the requirements.) Note: Enter any decreases to account balances with a minus sign