Required information Exercise 5-9A (Algo) Effect of recognizing uncollectible accounts on the financial statements: Percent of receivables allowance method LO 5-2 [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 $10,000 of common stock for cash. 2. Provided $100,000 of services on account. 3. Provided $35,000 of services and recelved cash. 4. Collected $65.000 cash from accounts receivable. 5. Paid $18,000 of salaries expense for the year. 6. Adjusted the accounting records to reflect uncollectible accounts expense for the year. Leach estimates that 8 percent of the ending accounts receivable balance will be uncollectible. Year 2: 1. Wrote off an uncollectible occount for $680. 2. Provided $120,000 of services on account. 3. Provided $25,000 of services and collected cash. 4. Collected $102,000 cash from accounts recelvable. 5. Paid $22,000 of salaries expense for the year. 6. Adjusted the accounts to reflect uncollectible accounts expense for the year. Leach estimates that 8 percent of the ending accounts recelvable balance will be uncollectible. Prepare the statement of cash flows for Year 1. (Cash outflows should be indicated with a mifius sign.)