Brlef Exerclse 7-2 (Algo) Effect of recognizing uncollectible accounts on the financlal statements: percent of recelvables allowance method LO 7-2 Fun in the Sun Incorporated operates a beach chair rental service in south Florida. The company experienced the following events in its first year of operations: 1. Issued $110,000 of common stock for cash. 2. Provided $80,000 of rental services on account. 3. Collected $37,000 cash from accounts receivable. 4. Adjusted the accounting records to reflect uncollectible accounts expense for the year. Leach estimates that 10 percent of the ending accounts receivable balance will be uncollectible. Requlred: 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 amounts of the events into the model. The first transaction is shown as an example. Note: In the Cash Flow column, use OA to designate operating actlvity, IA for Investment actlvity, FA for flnencling actlvity, and NC for net change In cesh. Enter any decreases to occount balances and cesh outflows with a minus sign. Not all cells requlre an