Year $1$:

Issued $$10,000$ of common stock for cash.

Provided $$120,000$ of services on account.

Provided $$27,000$ of services and received cash.

Collected $$93,000$ cash from accounts receivable.

Paid $$20,000$ of salaries expense for the year.

Adjusted the accounting records to reflect uncollectible accounts expense for the year. Leach estimates that $7$ percent of the ending accounts receivable balance will be uncollectible.

Year $2$:

Wrote off an uncollectible account for $$690.$

Provided $$140,000$ of services on account.

Provided $$30,000$ of services and collected cash.

Collected $$122,000$ cash from accounts receivable.

Paid $$28,000$ of salaries expense for the year.

Adjusted the accounts to reflect uncollectible accounts expense for the year. Leach estimates that $7$ percent of the ending accounts receivable balance will be uncollectible.

Exercise $5-9$A $($Algo$)$ Parts a to c

Required

a$.$ Organize the transaction data in accounts under an accounting equation for Year $1.$

b$.$ Prepare the income statement, statement of changes in stockholders' equity, balance sheet, and statement of cash flows for Year $1.$

c$.$ What is the net realizable value of the accounts receivable at December $31,$ Year $1?$

Complete this question by entering your answers in the tabs below.

Req A

Req B Income

Req B

Statement of

Req B Bal

Req B

Statement

Changes

Sheet

Statement of $$

What is the net realizable value of the accounts receivable at December $31,$ Year $1?$

Net realizable value

Answer Requirment A$,$B$,$ and