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I really need help trying to put the information above into the chart and making the financial statement as well

as the balance sheet. PLEASE HELP ME!!

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Exercise 7-2B Accounting for uncollectible accounts: allowance method
LO 7-
Sandy's Accounting Service began operation on January 1, Year 1. The company experienced the fol-
lowing events for its first year of operations:
Events Affecting Year 1:
1. Provided $96,000 of accounting services on account.
2. Collected $80,000 cash from accounts receivable.
3. Paid salaries of $32,000 for the year.
4. Adjusted the accounts to reflect management's expectations that uncollectible accounts expense
would be $1,600.
Required
a. Organize the transaction data in accounts under an accounting equation.
Sandy's Accounting Service
Horizontal Statements Model
Balance Sheet
Acct. Titles
Event
Assets
Equity
for R/E
Cash
+ Acct. Rec.
Allow.
Ret. Ear.
Year 1
1.
2.
3.
4
Bal.

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b. Prepare an income statement, balance sheet, and statement of cash flows for Year I.
Sandy's Accounting Service
Income Statement

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LO 7-1
Exercise 7-5B Analyzing financial statement effects of accounting for uncollectible
accounts using the percent of revenue allowance method
Tull Bros. uses the allowance method to account for uncollectible accounts expense. Tull experienced
the following four events in Year 1:
1. Recognized $68,000 of revenue on account.
2. Collected $62,000 cash from accounts receivable.
3. Determined that $500 of accounts receivable were not collectible and wrote them off.
4. Recognized uncollectible accounts expense for the year. Tull estimates that uncollectible accounts
expense will be 2 percent of its sales.
Required
Show the effect of each of these events on the elements of the financial statements, using a horizontal
statements model like the following one. Use + for increase, - for decrease, and NA for not affected.
In the Statement of Cash Flows column, indicate whether the item is an operating activity (OA), invest-
ing activity (IA), or financing activity (FA).
Balance Sheet
Income Statement
Statement
Assets
= Llab. +
Equity
of Cash
Event
Flows
No.
Cash + Net Realizable Value of Rec. =
Ret. Earn.
Rev.
- Exp. = Net Inc.

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Event
Assets
=
Liab.
+
Equity
Rev.
Exp.
Net Inc.
Cash Flows
.....
Cash
A. Rec.
Allow.
.......
Ret. Earn.
1 .
2.
3.
4.

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