Question

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: 2018: 1. Issued $10,000 of common stock for cash. 2. Provided $110.000 of services on account. 3. Provided $31.000 of services and received cash. 4. Collected $79.000 cash from accounts receivable. 5. Paid $22.000 of salaries expense for the year. 6. Adjusted the accounting records to reflect uncollectible accounts expense for the year. Leach estimates that 9 percent of the ending accounts receivable balance will be uncollectible. 2019: 1. Wrote off an uncollectible account for $720. 2. Provided $130,000 of services on account. 3. Provided $25.000 of services and collected cash. 4. Collected $112.000 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 9 percent of the ending accounts receivable balance will be uncollectible. -1. Organize the transaction data in accounts under an accounting equation. -2. Prepare an income statement for 2019. 3. Prepare the statement of changes in stockholders' equity for 2019. -4. Prepare the balance sheet for 2019. -3. Prepare the statement of cash flows for 2019. -8. What is the net realizable value of the accounts receivable at December 31, 2019? Complete this question by entering your answers in the tabs below. Reg D1 Reg D2 Req D3 Req D4 Reg D5 Reg D6 Organize the transaction data in accounts under an accounting equation. (Enter any decreases to account balances with a minus sign. If there is no effect on the Accoun Titles for Retained Earnings, leave the cell blank.) Event Cash 1. 98.000 + 0 + 0+ 25,000+ LEACH INC. Accounting Equation for the Year 2019 Assets Equity Accounting Titles for Retained Accounts - Allowance Liabilities + Common Retained Earnings Receivable stock Earnings 31.0001 - 2.790 10,000+ 116.210 (720) - (720) = 0+ 130.0001 - 0 + 130.000 Service revenue 25,000 Service revenue (112.000) 0 + (24.000) Salaries expense Uncollectible accounts expense 0 247.210 12 000 (24,000) + 6. 0+ 211,000 +

What is the allowance is Q 6?

Answer 1

For 2018

Services provided on account= $110,000

Cash received from accounts receivable = $79,000

Accounts receivable ending =  Services provided on account - Cash received from accounts receivable

= 110,000 - 79,000

= $31,000

Estimated uncollectibles = 9% of Accounts receivable ending

= 31,000 x 9%

= $2,790

For 2019

Accounts receivables, beginning = $31,000

Services provided on account= $130,000

Cash received from accounts receivable = $112,000

Accounts receivable ending =  Accounts receivables, beginning + Services provided on account - Cash received from accounts receivable

= 31,000 + 130,000 - 112,000

= $49,000

Estimated uncollectibles = 9% of Accounts receivable ending

= 49,000 x 9%

= $4,410

Allowance for 2019 = $4,410

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