Bad Debts and the Direct Method

	Ending Balances		Beginning Balances
Accounts receivable	$	9,500	$	13,000
Allowance for bad debts		3,100		3,000
Sales for the year		75,000
Net income for the year		20,000
Bad debt expense for the year		2,000
Write-off of uncollectible amounts for the year		1,900
Cash expenses for the year		53,000

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Prepare the Operating Activities section of the statement of cash flows using the direct method. When required, use the minus sign to indicate cash outflows, any cash payments or a decrease in cash.

Operating Activities Section of the Statement of Cash Flows
		$
Cash flows from operating activities		$