5 Required information The folowing information applies to the questions display

Question

5 Required information The folowing information applies to the questions displayed below Leach Inc. experienced the following events for the first two years of its operations: Year 1: Part 3 of 3 1. Issued $10,000 of common stock for cash. 2. Provided $78,000 of services on account 3. Provided $36,000 of services and received cash. 4. Collected $69,000 cash from accounts receivable. 5. Paid $38,000 of salaries expense for the year 6. Adjusted the accounting records to reflect uncollectible accounts expense for the year. Leach estimates that 5 percent 14.28 points eBook Hint Print References of the ending accounts recelvable balance will be uncollectible. Year 2 1. Wrote off an uncollectible account for $650. 2. Provided $88,000 of services on account. 3. Provided $32,000 of services and collected cash. 4. Collected $81,000 cash from accounts receivable. 5. Paid $65,000 of salaries expense for the year 6. Adjusted the accounts to reflect uncollectible accounts expense for the year. Leach estimates that 5 percent of the ending accounts receivable balance will be uncollectible.

Explanation / Answer

Net realizable value year 1 - 8550$

Accounts receivale, December 31 year 1
78000-69000 9000 Allowance for doubtful debts dec31 year 1
9000*5% 450 Net realizable value 8550

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