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. Paid 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 off. 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 N-LI.747A IAI-ONAL Complete this question by entering your answers in the tabs below. Reg D1 Reg D1 Stmt Reg D1 Reg D15mt Income Stmt of Changes Balance Sheet of Cashows Prepare an income statement for Year 1. Financial Statements Income Statement For the Year Ended Year 1 Expenses Total expenses Han Di Income Req D1 Stmt of Changes > Reg D1 Income Stmt Reg Di Stmt of Changes Reg D1 Reg D1 Stmt Balance Sheet of Cash Flows Prepare the statement of changes in stockholders' equity for Year 1. JOVA COMPANY Statement of Changes in Stockholders' Equity For the Year Ended Year 1 Beginning common stock $ $ 0 Ending common stock Beginning retained earnings 0 Ending retained earnings Total stockholders' equity $ 0