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 $100,000 of services on account.

3. Provided $25,000 of services and received cash.

4. Collected $75,000 cash from accounts receivable.

5. Paid $20,000 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.

Year 2:

1. Wrote off an uncollectible account for $750.

2. Provided $120,000 of services on account.

3. Provided $20,000 of services and collected cash.

4. Collected $102,000 cash from accounts receivable.

5. Paid $24,000 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.

d-5 Prepare the statement of cash flows for Year 2.

d-6 What is the net realizable value of the accounts receivable at December 31, Year 2.