The following transactions apply to Expert Consulting for 2014, the first year of operation: 

1. Recognized $70,000 of service revenue earned on account. 
2. Collected $62,000 from accounts receivable. 
3. Adjusted accounts to recognize uncollectible accounts expense. 

Expert uses the allowance method of accounting for uncollectible accounts and estimates that uncollectible accounts expense will be 2 percent of sales on account. The following transactions apply to Expert Consulting for 2015: 

1. Recognized $84,000 of service revenue on account. 
2. Collected $70,000 from accounts receivable. 
3. Determined that $1,100 of the accounts receivable were uncollectible and wrote them off. 
4. Collected $200 of an account that had been previously written off. 
5. Paid $51,200 cash for operating expenses. 
6. Adjusted accounts to recognize uncollectible accounts expense for 2015. Expert estimates that uncollectible accounts expense will be 1 percent of sales on account.