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 $1$: Provided $$200,000$ of cleaning services on account. Collected $$150,000$ cash from accounts receivable. Paid salaries of $$40,000$ for the year. Adjusted the accounts to reflect management$$s expectations that uncollectible accounts expense would be $$1,400.$ The expense was determined using the percent of revenue method.