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Grover Inc. uses the allowance method to account for collectible accounts expenses. Grover Inc. experienced...

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Accounting

Grover Inc. uses the allowance method to account for collectible accounts expenses. Grover Inc. experienced the following four accounting events in year 1: 1. Recognized 92,000 of revenue on the account. 2. Collected 78,000 cash from accounts receivable. 3. Wrote off uncollectible accounts of 720. 4. Recognized uncollectible accounts expense. Grover estimated that collectible accounts expense will be 1 percent of sales on account.

Required Show the effect of each event on the elements of the financial statements using a horizontal statements model like the one shown. Borrow the following coding scheme to record your answers: the increase is +, the decrease is -, leave the cell blank for not affected in the cash flow column, and indicate whether the item is an operating activity 0A, investing activity IA, or financing activity FA. The first transaction is.

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