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Problem 7-26B Comprehensive accounting cycle problem (uses percent of revenue allowance method) The following trial balance was prepared for Corporation of Your Service (Your Service) on December 31. Year 1. after the closing entries were posted: Account Title Debit Credit Cash $46.200 Accounts Receivable 21.300 Allowance for Doubtful Accounts $ 1.350 Inventory 85,600 Accounts Payable 28,0001 Common Stock 80,000 Retained Earnings 43.7501 Totals $153.1005153.100 Your Service had the following transactions in Year 2: 1. Purchased merchandise on account for $260,000 2. Sold merchandise that cost $243,000 on account for $340,000. (Must also recognize COGS expense) 3. Performed $80.000 of services for cash. 4. Sold merchandise for $60,000 to credit card customers. The merchandise cost $41,250. The credit card company charges a 5 percent fee. (Debit credit card expense $ 60,000 595)' (Must also recognize COGS expense)" Question 7 1 pts Please refer to the previous question about Corporation of your service and using its financial information answer the following questions for the Year 2: Net income Uncollectible Accounts Expense Allowance for Doubtful Accounts balance as of December 31. Y2 Total Liability as of December 31, Y2 Total Stockholders' Equity as of December 31.Y2 Net Realisable Value of the Accounts Receivable as of December 31.Y2

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