3 Problem: Module 2 Textbook Problem 3 Check my work 0.5 points 2042900 Skipped Hint Print Learning Objective: 2-2 Use the percent of revenue method to account for uncollectible accounts expense 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 $92,000 of revenue on account. 2. Collected $78,000 cash from accounts receivable. 3. Wrote off uncollectible accounts of $720. 4. Recognized uncollectible accounts expense. Grover estimated that uncollectible 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 here. Use the following coding scheme to record your answers: increase is +, decrease is -, leave the cell blank for not affected. In the cash flow column, indicate whether the item is an operating activity (OA), Investing activity (IA), or financing activity (FA). The first transaction is entered as an example. Mc GROVER INC. Horizontal Statements Model Event No. Assets Liabilities Equity Income Statement Cash Flow Retained Earnings Revenue Expense Net Income Prev 3 of 20 Next >