Grover Inc. uses the allowance method to account for uncollectible accounts expense. Grover Inc. experienced the following four accounting events in Year 1:

1. Recognized $88,000 of revenue on account.
2. Collected $82,000 cash from accounts receivable.
3. Wrote off uncollectible accounts of $1,500.
4. Recognized uncollectible accounts expense. Grover estimated that uncollectible 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. Use + for increase and for decrease. In the Statement of Cash Flows column, indicate whether the item is an operating activity (OA), investing activity (IA), 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.)