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

Recognized $$92,000$ of revenue on account.

Collected $$78,000$ cash from accounts receivable.

Wrote off uncollectible accounts of $$720.$

Recognized uncollectible accounts expense. Grover estimated that uncollectible accounts expense will be $1$ percent of sales on account.

Required

Show the effect of each event on the elements of 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$).$ The first transaction is entered as an example.

Record the previous transactions in general journal form.