Required information Exercise 7.7A (Algo) 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 incorporated experienced the following eventc for the first two years of its operations. Year 1: 1. Issued $19,000 of common stock for cash. 2. Provided $87,900 of services on account. 3. Provided $45,000 of services and received cash. 4. Collected $78,000 cash from accounts recelvable. 5. Pald $47,000 of calaries expense for the year. 6. Adjusted the accounting records to reflect uncollectible accounts expense for the year, Leech estimates that 5 percent of the ending accounts receivable balance will be uncollectible. 7. Closed the revenue account. B. Closed the expense accounts. Year 2: 1. Wrote off an uncollectible account for $1,100. 2. Provided $97,000 of services on account. 3. Provided $41,000 of services and collected cash. 4. Collected $90,000 cash from accounts recelvable. 5. Paid $74,000 of sataries expense for the year. 6. Adjusted tho accounts to reflect uncollectible accounts expense for the year. Leach ostimates that 5 percent of the ending accounts recelvable balonce will be uncollectible. 7. Closed the revenue account: 8. Closed the expense accounts d. Record the Year 2 events in general journal form and post them to T-accounts. Prepare the income statement, statement of changes in stockholders' equity, balance shect, and statement of cash fiows for Year 2. What is the net realizable value of the accounts recelvable at December 31 , Year 2 ? Complete this question by entering your answers in the tabs below. Record the Year 2 events in general journal form. (If no entry is required for a transaction/event, select "No journal entoy required" in the first account ficld. Round your answers to the nearest whole dollar amounts.? Post the Year 2 events to T-accounts. (Round your answers to the nearest whole dollar amounts.) Required information Prepare the income statement for Year 2. (Round your answers to the nearest whole dollar amounts.) Complete this question by entering your answers in the tabs below. Prepare the statement of changes in stockholders' equity for Year 2 . Required information Prepare the balance sheet for Year 2. (Enter amounts to be deducted with a minus sign. Round your answers to thi nearest whole dollar amounts.) Prepare the statement of cash flows for Year 2. (Enter cash outflows with a minus sign.)
