Exercise 7-9A (Algo) Accounting for uncollectible accounts: direct write-off method LO 7-4 Patel Service Company does make a few soles on account but is mostly a cash business. Consequently, it uses the direct write-off method to account for uncollectble accounts. During Yeat 1 , Patel Service Company eatned $35,950 of cash revenue and $8,988 of revenue on account. Cash operating expenses were $22,886. After numerous attempts to collect a $206 account recelvable from Sam Stephens, the account was determined to be uncollectble in Year t. Required: a. Show the effects of (1) cash revenue, (2) revenue on account, (3) cash expenses, and (4) write off of the uncollectible account on the financial statements using a horizontal statements model. in the Statement of Cash Flows column, indicate whether the item is an operating activity (OA), investing activity (IA), or financing activity (FA) b. What amount of net income did Patel Service Compony report on the Year 1 income statement? Complete this question by entering your answers in the tabs below What amount of net income did Patel Service Company report on the Year 1