Exercise 7-1A Analysis of financial statement effects of accounting for uncollectible accounts under the allowance method LO 7-1 Businesses using the allowance method for the recognition of uncollectible accounts expense commonly experience four accounting events 1. Recognition of uncollectible accounts expense through a year-end adjustment. 2. Write-off of uncollectible accounts 3. Recognition of revenue on account. 4. Collection of cash from accounts receivable, ferences Required Show the effect of each event on the elements of the financial statements, using a horizontal statements model is the one shown next. Use the following coding scheme to record your answers increase is + and decrease is - In the Statement of cash flows column, indicate whether the item is an operating activity (OA). Investing activity (A), or financing activity (FA). Columns for events that have no effect on any of the elements should be left blank. The first transaction is entered as an example. (Note: Not all cells will require an input.) Effect of Events on the Financial Statements Balance Sheet Income Statement Stockholders Net Revenue - Expense - Equity Inc Cash Flow Event Assets