Required information Exercise 7-2A (Algo) Accounting for uncollectible accounts: allowance method LO 7-1 [The following information applies to the questions displayed below.] Holmes Cleaning Service began operation on January 1, Year 1. The company experienced the following events for its first. year of operations. Events Affecting Year 1: 1. Provided $200,000 of cleaning services on account. 2. Collected $150,000 cash from accounts receivable. 3. Paid salaries of $24,000 for the year. 4. Adjusted the accounts to reflect management's expectations that uncollectible accounts expense would be $1,500. The expense was determined using the percent of revenue method. Prepare an income statement for Year 1. \begin{tabular}{|l|r|r|} \hline \multicolumn{2}{|c|}{ HOLMES CLEANING SERVICE } \\ \( \qquad \multicolumn{2}{|c|}{ \) Bance Sheet } & \\ \hline Assets & \\ \hline Cash & & \\ \hline Aocounts recelvable & & 126,000 \\ \hline & & \\ \hline Total assots & & \\ \hline Liabilities & & 126,000 \\ \hline Stockholders' equity & & \\ \hline Retained eamings & & \\ \hline & & \\ \hline Total stockholders' equity & & \\ \hline Total liabilities and stockholders' equity & & 0 \\ \hline \end{tabular} HOLMES CLEANING SERVICE Statement of Cash Flows For the Year Ended December 31, Year 1