Brief Exercise 5-5 (Algo) Effect of credit card sales on financial statements LO 5-5 Music Flow is a streaming music service specializing in podcasts. Music Flow generates revenue through subscriptions that requires customers to pay using a credit card. Consider the following events for Music Flow in Year 1: Music Flow earned $520,000 of subscription revenue during Year 1 . Music Flow submitted the credit card receipts to the credit card company immediately. The credit card company paid Music Flow cash in the amount of face value less a 5 percent service charge. Required: Use a horizontal financial statements model to show how each event affects the balance sheet, income statement, and statement of cash flows. More specifically, record the