Patel Service Co. does make a few sales on account but is mostly a cash business. Consequently, it uses the direct write-off method to account for uncollectible accounts. During Year 1, Patel Service Co, earned $35,000 of cash revenue and $4,500 of revenue on account. Cash operating expenses were $19,000. After numerous attempts to collect a $120 account recoivable from Sam $tephens, the account was determined to be uncollectible in Year 1. Required a. Show the effects of (1) cash revenue, (2) revenue on account, (3) cash expenses, and (4) write off of the uncollectible account on the finaricial statements using a horizontal stetements model like the one shown here. In the Cash Flow column, indicate whether the item is an operating activity (OA), investing octivity (IA) of financing activity (FA). Use NA to indicate that an element is not atfected by the event. b. What amount of net income did Patel Service Co, report on the Year 1 income statement? c. Prepore the general journal entries for the four accounting events listed in Requirement a. 0. Answer is not complete. Complete this question by entering your answers in the tabs belont. Show the effects of (t) cash revenue, (2) revenue on socount, (3) cash expensee, and (4) write off of the uncoliectible account on the faianclal statements using a horizai statements model like the one shown here. In the Cosh Fow column, indicate whether the liem is an operoting activity (OA), ifvesting activity ( 1 A), of financing activity Na to indicate that an element is not affected by the event. (Enter any decreases to account balances with a minus sign.) Show the effects of (1) cash revenue, (2) revenue on account, (3) cash expenses, and (4) write off of the uncollectible account on the financlal statements using a horit statements model tike the one shown here. In the Cash Flow column, indicate whether the item is an operating activity (OA), investing activity (IA), or financing activity NA to indicate that an element is not affected by the event. (Enter any decreases to account balances with a minus lign.) Required a. Show the effects of (1) cash revenue, (2) revenue on account, (3) cash expenses, and (4) write off of the uncollectible account on the financial statements using a horizontal statements model like the one shown here. In the Cash Flow column, indicate whether the item is an operating activity (OA), investing activity (IA), or financing activity (FA). Use NA to indicate that an element is not affected by the event b. What amount of net income did Patel Service Co, report on the Year 1 income statement? c. Prepare the general journal entries for the four accounting events listed in Requirement a. Answer is not complete. Complete this question by entering your answers in the tabs below. What amount of net income did Patel Service Co. report on the Year 1 income statement? Complete this question by entering your answers in the tabs below. Prepare the general journal entries for the four accounting events listed in Requirement a. (If no entry is required for a transaction/event, select "No journal entry required" in the first account fleld.)
