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 events 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 receivable. 5. Paid $47,000 of salaries expense for the year. 6. Adjusted the accounting records to reflect uncollectible accounts expense for the year. Leach estimates that 5 percent of the ending accounts receivable balance will be uncollectible 7. Closed the revenue account. 8. 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 receivable. 5. Paid $74,000 of salaries expense for the year. 6. Adjusted the accounts to reflect uncollectible accounts expense for the year: Leach estimates that 5 percent of the ending accounts receivable balance will be uncollectible 7. Closed the revenue account: 8. Closed the expense accounts. Adjusted the accounts to reflect uncollectible accounts expense for the year. Leach estimates that 5 percent of the ending accounts receivable balance will be uncollectible. Record the entry. Note: Enter debits before credits. Record the entry to close the revenue account. Note: Enter debits before credits. Record the entry to close the expense accounts. Note: Enter debits before credits