Exercise 7-7A (Algo) Effect of recognizing uncollectible accounts on the financial statements: percent of receivables allowance method LO 7-2

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Leach Incorporated experienced the following events for the first two years of its operations.

Year 1:

Issued $13,000 of common stock for cash.

Provided $81,300 of services on account.

Provided $39,000 of services and received cash.

Collected $72,000 cash from accounts receivable.

Paid $41,000 of salaries expense for the year.

Adjusted the accounting records to reflect uncollectible accounts expense for the year. Leach estimates that 5 percent of the ending accounts receivable balance will be uncollectible.

Closed the revenue account.

Closed the expense accounts.

Year 2:

Wrote off an uncollectible account for $800.

Provided $91,000 of services on account.

Provided $35,000 of services and collected cash.

Collected $84,000 cash from accounts receivable.

Paid $68,000 of salaries expense for the year.

Adjusted the accounts to reflect uncollectible accounts expense for the year. Leach estimates that 5 percent of the ending accounts receivable balance will be uncollectible.

Closed the revenue account.

Closed the expense accounts.

Record the Year 2 events in general journal form. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your answers to the nearest whole dollar amounts.) A Wrote off an uncollectible account for $800. Record the entry. B Provided $91,000 of services on account. Record the entry. c Provided $35,000 of services and collected cash. Record the entry. D Collected $84,000 cash from accounts receivable. Record the entry. E Paid $68,000 of salaries expense for the year. Record the entry. Note : = journal entry has been entered Required information Complete this question by entering your answers in the tabs below. Prepare the income statement for Year 2. (Round your answers to the nearest whole dollar amounts.) . Record the Year 2 events in general journal form and post them to T-accounts. Prepare the income statement, statement ihanges in stockholders' equity, balance sheet, and statement of cash flows for Year 2 . What is the net realizable value of th iccounts receivable at December 31 , Year 2? Complete this question by entering your answers in the tabs below. Prepare the statement of changes in stockholders' equity for Year 2. Record the Year 2 events in general journal form and post them to T-accounts. Prepare the income statement, statement hanges in stockholders' equity, balance sheet, and statement of cash flows for Year 2 . What is the net realizable value of th ccounts receivable at December 31 , Year 2 ? Complete this question by entering your answers in the tabs below. Prepare the balance sheet for Year 2. (Enter amounts to be deducted with a minus sign. Round your answers to the nearest whole dollar amounts.) Record the Year 2 events in general journal form and post them to T-accounts. Prepare the income statement, statement o hanges in stockholders' equity, balance sheet, and statement of cash flows for Year 2 . What is the net realizable value of the ccounts receivable at December 31, Year 2? Complete this question by entering your answers in the tabs below. Prepare the statement of cash flows for Year 2. (Enter cash outflows with a minus sign.) 5. Paid $68,000 of salaries expense for the year. 6. Adjusted the accounts to reflect uncollectible accounts expense for the year. Leach estimates that 5 percent of the ending accounts receivable balance will be uncollectible. 7. Closed the revenue account. 8. Closed the expense accounts. Exercise 7-7A (Algo) Part d . Record the Year 2 events in general journal form and post them to T-accounts. Prepare the income statement, statement of 'hanges in stockholders' equity, balance sheet, and statement of cash flows for Year 2. What is the net realizable value of the accounts receivable at December 31 , Year 2? Complete this question by entering your answers in the tabs below. What is the net realizable value of the accounts receivable at December 31 , Year 2 ? (Round your answer to the nearest whole dollar amounts.)