During the first year of operation Year 1. Direct Service Co. recognized $420,000 of service revenue on account. At the end of Year the accounts receivable balance was $70,000. For this first year in business, the owner believes uncollectible accounts expense will be about 1 percent of sales on account Required o. What amount of cash did Direct Service collect from accounts receivable during Year b. Assuming Direct Service uses the allowance method to account for uncollectible accounts, what amount should Direct Service record as uncollectible accounts expense for Year c. What is the net realizable value ofreceivables at the end of Year d. Show the effects of the given transactions on the financial statements by recording the appropriate amounts in a horontal statements model like the one shown here. In the Cash Flow column indicate whether the nem is an operating activity (OA) investing activity (IA) or financing activity (FA) For events that have no effect leave the cell blank Complete this question by entering your answers in the tabs below. Red A to RD What amount of cash did Direct Service collect from accounts receivable during your Assuming Direct Service uses the allowance method to account for uncollectible accounts, what amount should Direct Service record as uncollectible accounts expense for Year 1> What is the netreble value ofreceivables at the end of year 17 b Collections of accounts receivable Uncle accounts expense Notreble value RO) During the first year of operation Yeart Direct Service Co recognized 420,000 of service revenue on account. At the end of Year the accounts receivable balance was 570,000 For this first year in business, the owner believes uncollectible accounts expense wil be about percent of sales on account Required a. What amount of cash did Direct Service collect from accounts receivable during Year 1 b. Assuming Duct Service uses the allowance method to account for collectible accounts, what amount should Direct Service record as uncollectible accounts expense for Year! c. What is the net realable value of receivables at the end of Year d. Show the effects of the given transactions on the financial statements by recording the appropriate amounts in a hozott statements model ke the one shown here in the Cash Flow column, indicate whether the nem is an operating activity westing activity Alor financing activity For events that have no effect leave the collak Complete this question by entering your answers in the tabs below Ang tot show the effect of the transactions et les by records sont dans shower in the Carlow am Indicate whether the am lan pating activity (0) Windy Corfoucina divertimeffect , we call blinkrywing news todas as DEVICE.CO A och MIVA We 2. Cash Calede Uncle AG