Required information Exercise 7 7A Effect of recognizing uncollectible accounts on the financial statements percent of receivables allowance method LO 7 2 Skip to question 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 Issued $14,000 of common stock for cash Provided $82,400 of services on account Provided $40,000 of services and received cash Collected $73,000 cash from accounts receivable Paid $42,000 of salaries expense for the year 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 Closed the revenue account Closed the expense account Year 2 Wrote off an uncollectible account for $680 Provided $92,000 of services on account Provided $36,000 of services and collected cash Collected $85,000 cash from accounts receivable Paid $69,000 of salaries expense for the year 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 Exercise 7 7A Part d d Repeat parts a, b, and c for Year 2 (If no entry is required for a transaction event, select No journal entry required in the first account field Statement of Cash Flows and Balance Sheet only Items to be deducted must be indicated with a minus sign Round your answers to nearest whole dollar ) Prob Saved Check my work mode This shows what is correct or incorrect for the Required information LEACH INC Statement of Cash Flows For the Year Ended December 31, Year 2 Cash flow from operating activities Cash inflow from inventory X $ 58,474 X Cash inflow from customers (6,474) X Cash inflow from sale of land Net cash flow from operating activities $ 52,000 Cash flows from investing activities Cash flows from financing activities Net change in cash 52,000 Plus Beginning cash balance 85,000 Ending cash balance $ 137,000 Net realizable value

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Required information Exercise 7-7A Effect of recognizing uncollectible accounts on the financial statements: percent of receivables allowance method LO 7-2 Skip to question [The following

Required information

Exercise 7-7A Effect of recognizing uncollectible accounts on the financial statements: percent of receivables allowance method LO 7-2

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[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:

Issued $14,000 of common stock for cash.
Provided $82,400 of services on account.
Provided $40,000 of services and received cash.
Collected $73,000 cash from accounts receivable.
Paid $42,000 of salaries expense for the year.
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.
Closed the revenue account.
Closed the expense account.

Year 2:

Wrote off an uncollectible account for $680.
Provided $92,000 of services on account.
Provided $36,000 of services and collected cash.
Collected $85,000 cash from accounts receivable.
Paid $69,000 of salaries expense for the year.
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.

Exercise 7-7A Part d

d. Repeat parts a, b, and c for Year 2. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Statement of Cash Flows and Balance Sheet only: Items to be deducted must be indicated with a minus sign. Round your answers to nearest whole dollar.)

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Prob Saved Check my work mode : This shows what is correct or incorrect for the Required information LEACH INC. Statement of Cash Flows For the Year Ended December 31, Year 2 Cash flow from operating activities Cash inflow from inventory X $ 58,474 X Cash inflow from customers (6,474) X Cash inflow from sale of land Net cash flow from operating activities $ 52,000 Cash flows from investing activities Cash flows from financing activities Net change in cash 52,000 Plus: Beginning cash balance 85,000 Ending cash balance $ 137,000 Net realizable value