CB Winter Sports specializes in providing ski lessons to beginners. The company uses the allowance method to account for uncollectible accounts expense. CB Sports experienced the following four accounting events in Year 1:

1. Recognized $264,000 of revenue on account.
2. Collected $124,000 cash from accounts receivable.
3. Wrote off uncollectible accounts of $2,200.
4. Recognized uncollectible accounts expense. CB estimated that uncollectible accounts expense will be 3 percent of sales on account.

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 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 activity, IA for investment activity, FA for financing activity, and NC for net change in cash. Enter any decreases to account balances and cash outflows with a minus sign. Not all cells require an input - leave cells blank if there is no corresponding input needed.