Exercise 7.5A (Algo) Analyzing financial statement effects of accounting for uncollectible accounts using the percent of revenue allowance method LO 7-1 Grover incorporated uses the allowance method to account for uncollectible accounts expense. Grover incorpocated experionced the following four accounting events in Year 1 : 1. Recognized $84,000 of revenue on account. 2. Collected $78,000 cash from accounts receivable. 3. Wrote off uncollectible accounts of $1,300. 4. Fecognized uncoliectible accounts expense. Grover estimated that uncollectble accounts expense will be 2 percent of sales on account. Required: a. Show the effect of each event on the elements of the financial statements, using a horizontal statements model like the one shown next. The first transaction is entered as an example. Note: Use + for increase, - for decrease, or +/ for increase and decrease, in the Statement of Cash Flows column, indicate Note: Use + for increase, - for decrease, or +/= for increase and decrease, in the Statement of whether the item is an operating activity (OA), investing activity (IA), or financing activity (FA). Not all cells will require input