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I just need help in year 2 Thank you. Required information Exercise 7-7A Effect of recognizing uncollectible accounts on the financial statements: percent of receivables
I just need help in year 2 Thank you.
Required information Exercise 7-7A Effect of recognizing uncollectible accounts on the financial statements: percent of receivables allowance method LO 7-2 [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 $15,000 of common stock for cash. 2. Provided $83,500 of services on account 3. Provided $41,000 of services and received cash. 4. Collected $74,000 cash from accounts receivable. 5. Paid $43,000 of salaries expense for the year. 6. Adjusted the accounting records to reflect uncollectible accounts expense for the year. Leach estimates that 6 percent of the ending accounts receivable balance will be uncollectible. 7. Closed the revenue account. 8. Closed the expense account. Year 2: 1. Wrote off an uncollectible account for $700. 2. Provided $93,000 of services on account. 3. Provided $37,000 of services and collected cash. 4. Collected $86,000 cash from accounts receivable. 5. Paid $70,000 of salaries expense for the year 6. Adjusted the accounts to reflect uncollectible accounts expense for the year. Leach estimates that 6 percent of the ending accounts receivable balance will be uncollectible. Required information No Transaction General Journal Debit Credit A 1 Allowance for doubtful accounts 700 Accounts receivable 700 B 2 Accounts receivable 93,000 Service revenue 93,000 3 Cash 37,000 Service revenue 37,000 D 4 Cash 86,000 Accounts receivable 86,000 5 Salaries expense 70,000 Cash 70,000 F 6 Uncollectible accounts expense Allowance for doubtful accounts Required information Cash Common Stock Beg. Bal Beg Bal. End. Bal. End. Bal. Accounts Receivable Service Revenue Beg. Bal. Beg Bal End. Bal End. Bal. Allowance for Doubtful Accounts Retained Earnings Beg. Bal. Beg. Bal. End. Bal End. Bal. Salaries Expense Uncollectible Accounts Expense Beg Bal Beg Bal. End. Bal. End. Bal. CODStep by Step Solution
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