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$26$Exercise $7-7$A $($Algo$)$ Effect of recognizing uncollectible accounts on the financial statements: Percent of

receivables allowance method LO $7-2$

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

Leach Incorporated experienced the following events for the first two years of its operations:

Year $1$:

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

Provided $$80,000$ of services on account.

Provided $$33,000$ of services and received cash.

Collected $$47,000$ cash from accounts receivable.

Paid $$16,000$ of salaries expense for the year.

Adjusted the accounting records to reflect uncollectible accounts expense for the year. Leach estimates that $6$ percent

of the ending accounts receivable balance will be uncollectible.

Year $2$:

Wrote off an uncollectible account for $$2,630.$

Provided $$100,000$ of services on account.

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

Collected $$82,000$ cash from accounts receivable.

Paid $$22,000$ of salaries expense for the year.

Adjusted the accounts to reflect uncollectible accounts expense for the year. Leach estimates that $6$ percent of the

ending accounts receivable balance will be uncollectible.

Exercise $7-7$A $($Algo$)$ Part d

d$-1.$ Organize the transaction data in accounts under an accounting equation for Year $2.$

d$-2.$ Prepare an income statement for Year $2.$

d$-3.$ Prepare the statement of changes in stockholders' equity for Year $2.$

d$-4.$ Prepare the balance sheet for Year $2.$

d$-5.$ Prepare the statement of cash flows for Year $2.$

d$-6.$ What is the net realizable value of the accounts receivable at December $31,$ Year $2?$

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Req D$6$

Organize the transaction data in accounts under an accounting equation for Year $2.$

Note: Enter any decreases to account balances with a minus sign. Not all cells require input. Round your intermediate calculations and final answer to the

nearest whole dollar.

How do I find the uncollectible account expense?

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