Exercise 7-2A (Algo) 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 $210,000 of cleaning services on account. 2. Collected $157,500 cash from accounts receivable. 3. Pald salaries of $28,000 for the year 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: 0. 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. Organize the transaction data in accounts under an accounting equation. Note: Enter any decreases to account balances with a minus sign. Not all cells require input. Prepare an income statement for Year 1. Complete this question by entering your answers in the ta Prepare a balance sheet for Year 1 . Prepare a statement of cash flows for Year 1. Note: Amounts to be deducted should be indicated with a minus sian