Exercise 7-2B Accounting for uncollectible accounts: allowance method Sandy's Accounting 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 $96,000 of accounting services on account. 2. Collected $80,000 cash from accounts receivable. 3. Paid salaries of $32,000 for the year. 4. Adjusted the accounts to reflect management's expectations that uncollectible accounts expense would be $1,600. Required a. Organize the transaction data in accounts under an accounting equation. b. Prepare an income statement, balance sheet, and statement of cash flows for Year 1. a. b. Sandy's Accounting Service Income Statement For the Year Ended December 31, Year 1 Service Revenue Operating Expenses: Total Operating Expenses Net Income Sandy's Accounting Service Balance Sheet As of December 31, Year 1 Assets: Total Assets Liabilities: Stockholders' Equity: Total Stockholders' Equity Total Liabilities and Stockholders' Equity Sandy's Accounting 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