Holmes Cleaning Service began operation on January 1, Year 1. The company experienced the following events for its first year of operations:

1. Provided $84,000 of cleaning services on account.
2. Provided $16,000 of cleaning services for cash.
3. Collected $76,000 cash from Accounts Receivable.
4. Paid salaries of $28,500 for the year.
5. Adjusted the accounts to reflect managements expectations that Uncollectible Accounts Expense would be 2%. The expense was determined using the percent of revenue method.
6. Wrote off uncollectible accounts of $1,500.
7. Collected $1,000 cash from Accounts Receivable that was written off in #6.

1. Which event results in a debit to Uncollectible Accounts Expense and a credit to Allowance for Doubtful Accounts?

2. Which event results in a debit to Allowance for Doubtful Accounts and a credit Accounts Receivable?

3. What is the value of the Uncollectible Accounts Expense?

4. How much Net Income did Holmes earn in Year 1?

5. What is the value of Total Assets on the Year 1 Balance Sheet?

6. What is the Net Cash Flows from Operating Activities?