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Grover Inc. uses the allowance method to account for uncollectible accounts expense Grover, Inc experienced the following four accounting events in Year 1: 1. Recognized $85,000 of revenue on account 2. Collected $79,000 cash from accounts receivable. 3. Wrote off uncollectible accounts of $1,350 4. Recognized uncollectible accounts expense. Grover estimated that uncollectible accounts expense will be 3 percent of sales on account Required a. Show the effect of each event on the elements of the financial statements, using a horizontal statements model like the one shown next. Use + for increase, - for decrease, and NA for not affected. In the cash flow column, indicate whether the item is an operating activity (OA), investing activity (IA), or financing activity (FA) or not affected (NA). The first transaction is entered as an example b. Record the above transactions in general journal form, Complete this question by entering your answers in the tabs below. Required A Required B Show the effect of each event on the elements of the financial statements, using a horizontal statements model like the one shown next. Use Increase, - for decrease, and NA for not affected. In the cash flow column, indicate whether the item is an operating activity (OA), investing : (IA), or financing activity (FA) or not affected (NA). The first transaction is entered as an example, Cash Flow Event Effect of Events on the Financial Statements Balance Sheet Income Statement Llabilities Stockholders' Ravenue Net Equity Expense Income NA NA Assets . NA 1. 2 3 4. Required 8 > Required A Required B Record the above transactions in general journal form. (If no entry is required for a transaction/event, select "No journa in the first account field.) View transaction list Journal entry worksheet Recognized $85,000 of revenue on account. Note: Enter debits before credits Transaction General Journal Dobit Credit 1 Journal entry worksheet Collected $79,000 cash from accounts receivable. Note: Enter debits before credits. Transaction General Journal Debit Credit 2 worksheet

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