Exercise 7-2A Accounting for uncollectible accounts: Allowance method LO 7-1 Holmes Cleaning Service began operation on January 1, Year 1. The company experienced the following events for its first year of operations: Events Affecting Year 1: 1. Provided $84,000 of cleaning services on account. 2. Collected $76,000 cash from accounts receivable. 3. Paid salaries of $28,500 for the year. 4. Adjusted the accounts to reflect management's expectations that uncollectible accounts expense would be $1.650. The expense was determined using the percent of revenue method. Required a. Organize the transaction data in accounts under an accounting equation, b. Prepare an income statement, a balance sheet, and a statement of cash flows for Year 1. Complete this question by entering your answers in the tabs below. Req A Req B1 Req B2 Req B3 Organize the transaction data in accounts under an accounting equation. (Enter any decreases to accoun sign. Not all cells in the "Accounts Titles for Retained Earnings" column may require an input - leave cells corresponding Retained Earnings input needed.) HOLMES CLEANING SERVICE Horizontal Statements Model Balance Sheet Assets Equity Accounts Retained - Allowance Earnings Event Accounts Titles for Retained Earnings Cash + Receivable Year 1 Bal. Req B1 > Reg A Req B1 Req B2 Req B3 Prepare an income statement for Year 1. HOLMES CLEANING SERVICE Income Statement For the Year Ended December 31, Year 1 Operating expenses Total operating expenses Complete this question by entering your answers in the tabs below. Req A Req B1 "Req B2 Req B3 points Prepare a balance sheet for Year 1. HOLMES CLEANING SERVICE Balance Sheet As of December 31, Year 1 eBook Assets References Total assets Liabilities Stockholders' Equity Total stockholders' equity Total liabilities and stockholders' equity Complete this question by entering your answers in the tabs below. Req A Req B1 Reg B2 Req B3 Prepare a statement of cash flows for Year 1. (Amounts to be deducted should be indicated with a minus sign.) HOLMES CLEANING SERVICE Statement of Cash Flows For the Year Ended December 31, Year 1 Cash flows from operating activities Net cash flow from operating activities Cash flows from investing activities Cash flows from financing activities Net change in cash Ending cash balance