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Required information The following information applies to the questions displayed belowj Leach Inc: experienced the following events for the first two years of its operations:
Required information The following information applies to the questions displayed belowj Leach Inc: experienced the following events for the first two years of its operations: Year 1: 1. Issued $10,000 of common stock for cash. 2 Provided $90.000 of services on account 3. Provided $27000 of services and received cash. 4. Collected $63,000 cash from accounts receivable 5. Paid $20,000 of salarles expense for the year 6. Adjusted the accounting records to reflect uncollectible accounts expense for the year Leach estimates that 8 percent of the ending accounts recelvable balance will be uncollectible Year 2: 1. Wrote off an uncollectible account for $660 2. Provided $110,000 of services on account. 3. Provided $25,000 of services and collected cash 4. Collected $92,000 cash from accounts receivable. 5. Paid $24,000 of salaries expense for the year 6 Adjusted the accounts to reflect uncollectible accounts expense for the year. Leach estimates that 8 percent of the ending accounts receivable balance will be uncollectible c. What is the net realizable value of the accounts receivable at December 31, Year 1
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