Required information Exercise 7-7A (Static) 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 $10,000 of common stock for cash. 2. Provided $78,000 of services on account. 3. Provided $36,000 of services and received cash. 4. Collected $69,000 cash from accounts receivable. 5. Paid $38,000 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. Year 2: 1. Wrote off an uncoliectible account for $650. 2. Provided $88,000 of services on account. 3. Provided $32,000 of services and collected cosh. 4. Collected $81,000 cash from accounts recelvable. 5. Paid $65,000 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. Exercise 7-7A (Static) Part b b. Prepare the income statement, statement of changes in stockholders' equity, balance sheet, and statement of cash flows for Year 1. Complete this question by entering your answers in the tabs below. Prepare the income statement for Year 1. b. Prepare the income statement, statement of changes in stockholders' equity, balance sheet, and statement of cash flows for Year Complete this question by entering your answers in the tabs below. Prepare the statement of changes in stockholders' equity for Year 1. b. Prepare the income statement, statement of changes in stockholders' equity, balance sheet, and statement of cash flows for Year Complete this question by entering your answers in the tabs below. Prepare the balance sheet for Year 1. b. Prepare the income statement, statement of changes in stockholders' equity, balance sheet, and statement of cash flows for Year 1 Complete this question by entering your answers in the tabs below. Prepare the statement of cash flows for Year 1. Note: Amounts to be deducted and cash outfiows should be indicated with a minus sign