Majestic Corporation had the following 2011 income statement data:
Revenues .............. $100,000
Expenses ............... 60,000
$ 40,000
In 2011, Majestic had the following activity in selected accounts:

Prepare Majestic€™s cash flows from operating activities section of the statement of cash flows using
(a) The direct method,
(b) The indirect method.

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Accounts Receivable Allowance for Doubtful Accounts 1,200 20,000 100,000 1,000 Revenues Writeoffs Writeoffs Collections 1,000 1,540 Bad debt expense 90,000 12/31/11 29,000 1,740 12/31/11