Grover Incorporated uses the allowance method to account for uncollectible accounts expense. Grover Incorporated experienced the following four accounting events in Year 1: 1. Recognized $77,000 of revenue on account. 2. Collected $71,000 cash from accounts receivable. 3. Wrote off uncollectible accounts of $950. 4. Recognized uncollectible accounts expense. Grover estimated that uncollectible accounts expense will be 3 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. Use + for increase, - for decrease, and blank for not affected. In the Statement of Cash Flows column, indicate whether the item is an operating activity (OA), Investing activity (IA), financing activity (FA), or not affected (blank). The first transaction is entered as an example. b. Record the previous transactions in general journal form. for Show the effect of each event on the elements of the financial statements, using a horizontal statements model. Use + for increase, decrease, and blank for not affected. In the Statement of Cash Flows column, indicate whether the item is an operating activity (OA), Investing activity (IA), financing activity (FA), or not affected (blank). The first transaction is entered as an example. Effect of Events on the Financial Statements Horizontal Statements Model Balance Sheet Income Statement Stockholders' Equity Retained Earnings Revenue Expense Net Income Statement of Cash Flows + Event Assets = Liabilities 1. 2 3. 4. + + + + Journal entry worksheet < A B C D Recognized $77,000 of revenue on account. Record the event. Note: Enter debits before credits. Transaction 1 General Journal Debit Credit + Record entry Clear entry View general journal Journal entry worksheet > A C D Collected $71,000 cash from accounts receivable. Record the event. Note: Enter debits before credits. Transaction 2 General Journal Debit Credit Record entry Clear entry View general journal > Journal entry worksheet A B D Wrote off uncollectible accounts of $950. Record the event. Note: Enter debits before credits. Transaction 3 General Journal Debit Credit Record entry Clear entry Required A View general journal Journal entry worksheet < A B C Recognized uncollectible accounts expense. Grover estimated that uncollectible accounts expense will be 3 percent of sales on account. Record the event. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal