Accounting for uncollectible accounts: allowance method lo 7-1
[the following information applies to the questions displayed below.]
holmes cleaning service began operation on january 1, year 1. the company experienced the following events for its first year of operations:
events affecting year 1:
provided $210,000 of cleaning services on account.
collected $157,500 cash from accounts receivable.
paid salaries of $38,000 for the year.
adjusted the accounts to reflect management’s expectations that uncollectible accounts expense would be $1,300. the expense was determined using the percent of revenue method.
exercise 7-2a part c
c. prepare an income statement, balance sheet, and statement of cash flows for year 1. (statement of cash