$1$

Exercise $7-2$A $($Algo$)$ Accounting for uncollectible accounts: Allowance method LO $7-1$

$3$

points

Holmes Cleaning Service began operation on January $1,$ Year $1.$ The company experienced the following events for its first year of operations:

eBook

Events Affecting Year $1$:

Hint

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

Print

Collected $$90,000$ cash from accounts receivable.

Paild salaries of $$42,000$ for the year.

Adjusted the accounts to reflect management's expectations that uncollectible accounts expense would be $$1,600.$ The expense was determined using the percent of revenue method.

Required

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

b$.$ Prepare an income statement, a balance sheet, and a statement of cash flows for Year $1.$

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

Organize the transaction data in accounts under an accounting equation.

Note: Enter any decreases to account balances with a minus sign. Leave cells blank if no input is needed.Complete this question by entering your answers in the tabs below.

Organize the transaction data in accounts under an accounting equation.

Note: Enter any decreases to account balances with a minus sign. Leave cells blank if no input is needed.

Book

Hint

Print

$\backslash$table$[[$HOLMES CLEANING SERVICE$],[$Accounting Equation for Year $1],[$Year $1$ Events,Balance Sheet,Account Titles for Retained Earnings $],[\backslash$table$[[$Assets$],[$Assets$]],,$Equity$],[$Cash$,,$Net Realizable Value of Accounts Recelvable,$-,$Retained Earnings$],[1.,,,,=,,],[2.,,,,-,,],[3.,,,,=,,],[4.,,,,=,,],[$Balance$,0,,0,=,0,]]$

$$

$$