Required information (The following information applies to the questions displayed below.) Leach Inc. experienced the following events for the first two years of its operations: Year 1: 1. Issued $30,000 of common stock for cash. 2. Provided $100,000 of services on account. 3. Provided $56,000 of services and received cash. 4. Collected $89,000 cash from accounts receivable. 5. Paid $58,000 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 receivable balance will be uncollectible. 7. Closed the revenue account. 8. Closed the expense account. Year 2: 1. Wrote off an uncollectible account for $860. 2. Provided $108,000 of services on account. 3. Provided $52,000 of services and collected cash. 4. Collected $101,000 cash from accounts receivable. 5. Paid $85,000 of salaries expense for the year. 6. Adjusted the accounts to reflect uncollectible accounts expense for the year. Leach estimates that 5 percent of the ending accounts receivable balance will be uncollectible. LEACH INC. Income Statement For the Year Ended December 31, Year 1 Operating expenses Total operating expenses 0 $ 0 LEACH INC. Statement of Changes in Stockholders' Equity For the Year Ended December 31, Year 1 $ 0 0 Total stockholders' equity $ 0 LEACH INC. Balance Sheet As of December 31, Year 1 Assets 0 Total assets $ $ 0 Liabilities Stockholders' equity 0 Total stockholders' equity Total liabilities and stockholders' equity $ 0 LEACH INC. Statement of Cash Flows For the Year Ended December 31, Year 1 Cash flow from operating activities $ 0 Net cash flow from operating activities Cash flows from investing activities Cash flows from financing activities Net change in cash 0 Ending cash balance $ 0 c. What is the net realizable value of the accounts receivable at December 31, Year 1? Net realizable value