* O Help Save & Exit Submit Check my work During the first year of operation, Year 1, Direct Service Co. recognized $340,000 of service revenue on account. At the end of Yeart the accounts receivable balance was $66,836. For this first year in business, the owner believes uncollectible accounts expense will be about 5 percent of sales on account. Required a. What amount of cash did Direct Service collect from accounts receivable during Year 1? b. Assuming Direct Service uses the allowance method to account for uncollectible accounts, what amount should Direct Service record as uncollectible accounts expense for Year 1? c. Prepare the general journal entries to: (1) Record service revenue on account. (2) Record collections from accounts receivable. (3) Record the entry to recognize uncollectible accounts expense. d. What is the net realizable value of receivables at the end of Year 1? e. Show the effects of the transactions listed in Requirement con the financial statements by recording the appropriate amounts in a horizontal statements model like the one shown hext. When you record amounts in the Cash Flow column, indicate whether the item is an operating activity (OA), investing activity (A), or financing activity (FA). The letters NA indicate that an element is not affected by the event. Complete this question by entering your answers in the tabs below. !!! Prev Help Save & Exit Su an operating activity (OA), investing activity (IA), or financing activity (FA). The letters NA indicate that an element is not affected by the Check my we event. Complete this question by entering your answers in the tabs below. Req A and B Reqc Reg D ReqE What amount of cash did Direct Service collect from accounts receivable during Year 1? Assuming Direct Service uses the allowance method to account for uncollectible accounts, what amount should Direct Service record as uncollectible accounts expense for Year 1? Cash collected Uncollectible accounts expense Reqc > ROGUE 14 of 14 !! Next > CUTUS UN Unemploy UU way heducation.com/flow/connect.html ork i . What is the net realizable value of receivables at the end of Year 1? 3. Show the effects of the transactions listed in Requirement con the financial statements by reco norizontal statements model like the one shown next. When you record amounts in the Cash Flow an operating activity (OA), investing activity (IA), or financing activity (FA). The letters NA indicate th event. Complete this question by entering your answers in the tabs below. Req A and B ReqC Reg D ReqE What is the net realizable value of receivables at the end of Year 1? Net realizable value Complete this question by entering your answers in the tabs below. Check my work Req A and B Reqc Reg D ReqE Show the effects of the transactions listed in Requirement con the financial statements by recording the appropriate amounts in a horizontal stab record amounts in the Cash Flow column, indicate whether the item is an operating activity (OA), investing activity (IA), or financing activity (FA) affected by the event. (Enter any decreases to account balances with a minus sign.) Cash Flow Assets Accounts Receivable Event DIRECT SERVICE COMPANY Effect of Events on the Financial Statements for Year 1 Liabilities - Equity Revenue - Expenses - Net Income - Allowances Allow Retained Earnings Cash Totals 24 O DONDOOROVS 02
