Problem 5-22 Accounting for notes receivable and uncollectible accounts using he percent of sales allowance method [L.O. 2, 4] (The following information applies to the questions displayed below) The following transactions apply to Baker Co. For 2010, its first year of operations. Issued $130,000 of common stock for cash. Provided $102,000 of services on account. Collected $92,000 cash from accounts receivable. Loaned $9,000 to BBC on September 1, 2010. The note had a one-year term to maturity and an 8 percent interest rate. Paid $46,000 of salaries expense for the year. Paid a $2,500 dividend to the stockholders. Recorded the accrued interest on December 31, 2010 (see item 4.) Uncollectible accounts expense is estimated to be 1 percent of sales on account