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Problem $5-26$A $($Algo$)$ Accounting for notes receivable and uncollectible accounts using the percent of sales allowance method LO $5-1,5-4$

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The following transactions apply to Hooper Co$.$ for Year $1,$ its first year of operations:

Issued $$130,000$ of common stock for cash.

Provided $$100,000$ of services on account.

Collected $$88,000$ cash from accounts receivable.

Loaned $$11,000$ to Mosby Co$.$ on November $30,$ Year $1.$ The note had a one$-$year term to maturity and a $6$ percent interest rate.

Paid $$34,000$ of salaries expense for the year.

Paid a $$2,000$ dividend to the stockholders.

Recorded the accrued interest on December $31,$ Year $1($see item $4).$

Estimated that $1$ percent of service revenue will be uncollectible.