Required information Exercise 7-7A (Algo) Effect of recognizing uncollectible accounts on the financial statements: Percent of receivables allowance method LO 72 [The following information opplies to the questions displayed below] Leach incorporated 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 $80,000 of services on account. 3. Provided $25,000 of services and received cash. 4. Collected $55,000 cash from accounts receivable. 5. Paid $14,000 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 $2.540. 2. Provided $100,000 of services on account. 3. Provided $30,000 of services and collected cash. 4. Collected $82,000 cash from accounts recelvable. 5. Paid $32,000 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. 6. Adjusted the accounts to reflect uncollectible accounts expense for the year. Leach estimates that 6 percent of the ending accounts recelvable balance will be uncollectible. Exercise 7-7A (Algo) Part a Required: a. Organize the transaction data in accounts under an accounting equation. Note: Enter any decreases to account balances with a minus sign. Not all cells require input