How to calculate the uncollectible balance

Required information [The following information applies to the questions displayed below.] Leach Inc. experienced the following events for the first two years of its operations: Year 1: 1. Issued $10,000 of common stock for cash. 2. Provided $90,000 of services on account. 3. Provided $33,000 of services and received cash. 4. Collected $57,000 cash from accounts receivable. 5. Paid $16,000 of salaries expense for the year. 6. Adjusted the accounting records to reflect uncollectible accounts expense for the year. Leach estimates that 7 percent of the ending accounts receivable balance will be uncollectible. Year 2: 1. Wrote off an uncollectible account for $730. 2. Provided $110,000 of services on account. 3. Provided $20,000 of services and collected cash. 4. Collected $92,000 cash from accounts receivable. 5. Paid $32,000 of salaries expense for the year. 6. Adjusted the accounts to reflect uncollectible accounts expense for the year. Leach estimates that 7 percent of the ending accounts receivable balance will be uncollectible. Event + Bal. 1. LEACH INC. Accounting Equation for the Year 2 Equity Liabilities + Common Accounting Titles for Retained Retained Earnings Stock Earnings 0] + 10,000 + 104,690 0 + 01 + 0 01 + 01 + 110,000 Service revenue 01 + 01 + 20,000 Service revenue 01 + 0 + 0 Assets Cash NRV Accounts Receivable 84,000 + 30,690 0 + 01 = 01 + 110,000 20,000+ 01 = 92,000 + (92,000) = (32,000) + 01 = 01 + 164,000 + 48,690 = 2. 4. 5. 01 + 01 + 6. = 01 + 01 + : (32,000) Salaries expense Uncollectible accounts expense 202,690 Bal. 0 + 10,000 +