During the first year of operation, Year $1,$ McGinnis Appliance recognized $$316,000$ of service revenue on account. At the end of Yea: the accounts receivable balance was $$62\mathrm{.}118.$ Even though this is his first year in business, the owner believes he wil collect al out about $5$ percent of the ending balance.

Required

a$.$ What amount of cash was collected by McGinnis during Year $1?$

b$.$ Assuming the use of an allowance system to account for uncollectible accounts, what amount should McGinnis record as uncollectible accounte expense in Year $12$

c$.$ What is the net realizable value of receivables at the end of Year $1?$

d$.$ Show the effect of these transactions on the financial statements by recording the appropriate amounts in a horizontal statements model like the one shown here. When you record amounts in the Cash Flow column, indicate whether the item is an operating activity $($OA$),$ investing activity $($IA$),$ or financing activity $($FA$).$ If element is not affected by the event, leave the cell blank.