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The following transactions apply to Jova Company for Year $1,$ the first year of operation:

Issued $$12,000$ of common stock for cash.

Recognized $$67,000$ of service revenue earned on account.

Collected $$59,600$ from accounts receivable.

Paid operating expenses of $$35,300.$

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 $2$:

Recognized $$74,500$ of service revenue on account.

Collected $$67,600$ from accounts receivable.

Determined that $$940$ of the accounts receivable were uncollectible and wrote them off.

Collected $$200$ of an account that had previously been written off.

Paid $$48,900$ cash for operating expenses.

Adjusted the accounts to recognize uncollectible accounts expense for Year $2.$ Jova estimates uncollectible accounts expense will be $1\mathrm{.}0$ 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 $2.$Required information

$[$The following information applies to the questions displayed below.$]$

The following transactions apply to Jova Company for Year $1,$ the first year of operation:

Issued $$12,000$ of common stock for cash.

Recognized $$67,000$ of service revenue earned on account.

Collected $$59,600$ from accounts receivable.

Paid operating expenses of $$35,300.$

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 $2$:

Recognized $$74,500$ of service revenue on account.

Collected $$67,600$ from accounts receivable.

Determined that $$940$ of the accounts receivable were uncollectible and wrote them off.

Collected $$200$ of an account that had previously been written off.

Paid $$48,900$ cash for operating expenses.

Adjusted the accounts to recognize uncollectible accounts expense for Year $2.$ Jova estimates uncollectible accounts

expense will be $1\mathrm{.}0$ 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 $2.$

a$.$ Identify the type of each transaction $($asset source, asset use, asset exchange, or claims exchange$).$