Exercise 7-7A (Algo) Effect of recognizing uncollectible accounts on the financial statements: percent of receivables allowance method LO 7-2 Skip to question [The following information applies to the questions displayed below.] Leach Incorporated experienced the following events for the first two years of its operations. Year 1: Issued $17,000 of common stock for cash. Provided $85,700 of services on account. Provided $43,000 of services and received cash. Collected $76,000 cash from accounts receivable. Paid $45,000 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 a

Record the Year 2 events in general journal form and post them to T-accounts. Prepare the income statement, statement of change stockholders' equity, balance sheet, and statement of cash flows for Year 2. What is the net realizable value of the accounts ceivable at December 31, Year 2? Complete this question by entering your answers in the tabs below. 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.)