Exercise 7.2A (Algo) Accounting for uncollectible accounts: allowance method LO 7.1 Hoimes Cleaning Service began operation on January 1, Year 1. The company experienced the following events for its first year of operations: Events Affecting Yeor 1: 1. Provided $200,000 of cleaning services on account. 2. Collected $150,000 cash from accounts receivabie. 3. Paid salaries of $42.000 for the yeac, 4. Adjusted the accounts to reflect management's expectations that uncollectible accounts expense would be $1,400. The expense was determined using the percent of revenue method. Required: a. Organize the transaction data in accounts under an accounting equation. b. Prepore an income statement, a balance sheet, and a stetement of cash flows for Year 1 . Complete this question by entering your answers in the tabs below. Prepare an income statement for Year 1