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 recelved cash. 4. Collected $69,000 cash from accounts recelvable. 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 recelvable balance will be uncollectible. 7. Closed the revenue account. 8. Closed the expense accounts. Year 2: 1. Wrote off an uncollectible account for $650. 2. Provided $88,000 of services on account. 3. Provided $32,000 of services and collected cash. 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 yeac, Leach estimates that 5 percent of the ending accounts receivable balance will be uncollectible. 7. Closed the revenue account. 8. Closed the expense accounts. Exercise 7.7A (Static) Part d 1. Record the Year 2 events in general journal form and post them to T-accounts. Prepare the income statement, statement of changes istockholders' equity, balance sheet, and statement of cash flows for Year 2. What is the net realizable value of the accounts cetvable at December 31, Year 2? Complete this question by entering your answers in the tabs below. Record the Vear 2 events in general joumal form. (If no entry is required for a transaction/event, select "No journat entry required" in the first account field. Round your answers to the nearest whole dollar amounts.) Journal entry worksheet Note: Enter debits before credits. at the Yhar 2 events to T-accounts. (fteund your answeis to the nearest whole dolar arsounte.) LEACH INCORPORATED LEACH INCORPORATED Statement of Changes in Stockholders' Equity For the Year Ended December 31, Year 2 LEACH INGORPORATED Balance Sheet As of December 31, Year 2 Prepare the statement of cash flows for Year 2. (Enter cash outflows with a minus sign.) LEACH INCORPORATED statement of Cash Flows For the Year Ended December 31, Year 2 What is the net realizable value of the accounts receivable at December 31, Year 2? (Round yo dollar amounts.)