Exercise 7.9A (Algo) Accounting for uncollectible accounts: direct write-off method LO 7.4 Patel Service Company does make a few sales on account but is mostly a cash business. Consequently, it uses the direct write-off method to account for uncollectible accounts. During Year 1, Patel Service Company earned $37,050 of cash revenue and $9,263 of revenue on account, Cash operating expenses were $24,689. After numerous attempts to collect a $244 account receivable from $3 am Stephens, the account was determined to be uncollectible in Year 1. 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 Company report on the Year 1 income statement? Complete this question by entering your answers in the tabs below. 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 statements model. statements model. (OA), investing octivity (IA), or financieg activity (FA), Not ali celle require input. 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 statements model. Note: Enter any decreases to account balances and cash outflows with a minus sign. For changes on the Statement of Cash Flows, indicate whether the item is an (OA), investing activity (IA), or financing activity (FA). Not all celis require input. Stephens, the accoum was determined to be uncollectibie in Yeat 1 . Required: a. Show the effects of (1) cash revenue, (2) revenue on account, (3) cash expenses, and (4) wite off of the uncollectible account on the financial statements using a horizontal statements modol. In the Statement of Cash Flows column, indicate whether the item is an operating activity (OA), investing activity (A), or financing activity (FA) b. What amount of net income did Potet Service Company 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 income statement