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

Recognized $$71,000$ of revenue on account.

Collected $$65,000$ cash from accounts receivable.

Wrote off uncollectible accounts of $$650.$

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. 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 whether the item is an operating activity $($OA$),$ investing activity $($IA$),$ or financing activity $($FA$).$ Not all cells will require input.

$\backslash$table$[[$Horizontal Statements Model$],[\backslash$table$[[$Event$],[$Number$]],$Balance Sheet,Income Statement,$\{$

$\backslash$table$[[$Statement of Cash$],[$Flows$]]\}],[$Assets$,=,$Liabilities,$+,\backslash$table$[[$Stockholders$\text{'}],[$Equity$]],$Revenue,$-,$Expense,$=,$Net Income$],[1.,+,=,,+,+,+,-,,=,+,,],[2.,+1-,=,,+,+,,-,-,=,,+,OA$