Required information Problem 7-17A (Algo) Accounting for uncollectible accounts: two cycles using the percent of revenue allowance method LO 7-1 [The following information applies to the questions displayed below.) The following transactions apply to Jova Company for Year 1, the first year of operation: 1. Issued $19,500 of common stock for cash. 2. Recognized $60,500 of service revenue earned on account. 3. Collected $54,400 from accounts receivable. 4. Pald operating expenses of $37,600. 5. Adjusted accounts to recognize uncollectible accounts expense. Jova uses the allowance method of accounting for uncollectible accounts and estimates that uncollectible accounts expense will be 2 percent of sales on account. The following transactions apply to Jova for Year 2: 1. Recognized $68,000 of service revenue on account 2. Collected $62.400 from accounts receivable, 3. Determined that $810 of the accounts receivable were uncollectible and wrote them off 4. Collected $200 of an account that had previously been written oft 5. Pald $47,600 cash for operating expenses, 6. Adjusted the accounts to recognize uncollectible accounts expense for Year 2. Jova estimates uncollectible accounts expense will be 1 percent of sales on account Required Complete the following requirements for Year 1 and Year 2. Complete all requirements for Year 1 prior to beginning the requirements for Year 2. neli-AAI. Problem 7-17A (Algo) Part a a. Identify the type of each transaction (asset source, asset use, asset exchange, or claims exchange). Event No. Type of Transaction Year 1 1. 2. 3 4. 5. Year 2 1. 2. 3 4a. 4b. 5. 6