rrodiem $/-1/$A $($tatic$)$ Accounting tor uncollectidie accounts: two cycies using tne percent or revenue allowance method LO $7-1$

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The following transactions apply to Jova Company for Year $1,$ the first year of operation:

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

Recognized $$210,000$ of service revenue earned on account.

Collected $$162,000$ from accounts receivable.

Paid $$125,000$ cash for operating expenses.

Adjusted the accounts to recognize uncollectible accounts expense. Jova uses the allowance method of accounting for uncollectible accounts and estimates that uncollectible accounts expense will be $1$ percent of sales on account.

The following transactions apply to Jova for Year $2$:

Recognized $$320,000$ of service revenue on account.

Collected $$335,000$ from accounts receivable.

Determined that $$2,150$ of the accounts receivable were uncollectible and wrote them off.

Collected $$800$ of an account that had previously been written off.

Paid $$205,000$ cash for operating expenses.

Adjusted the accounts to recognize uncollectible accounts expense for Year $2.$ Jova estimates uncollectible accounts expense will be $0\mathrm{.}5$ percent of sales on account.

Complete the following requirements for Year $1$ and Year $2.$

Problem $7-17$A $($Static$)$ Part d Year $1$

d$-1.$ Prepare the income statement, statement of changes in stockholders' equity, balance sheet, and statement of cash flows for Year $1.$

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

Income

Statement of Statement Changes

Balance Sheet

Cash Flows

Prepare the income statement for Year $1.$

JOVA COMPANY

Income Statement

For the Year Ended Year $1$