Patel Service Company 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 Company earned $$35,450$ of cash revenue and $$8,863$ of revenue on account. Cash operating expenses were $$24,300.$ After numerous attempts to collect a $$288$ account receivable from Sam Stephens, 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 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$).$

b$.$ What amount of net income did Patel Service Company report on the Year $1$ income statement?

Complete this question by entering your answers in the tabs below.

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 statemer statements model.

Note: Enter any decreases to account balances and cash outflows with a minus sign. For changes on the Statement of Cash Flows, indicate whether the $(OA),$ investing activity $($IA$),$ or financing activity $($FA$).$ Not all cells require input.

$\backslash$table$[[$PATEL SERVICE COMPANY$],[$Horizontal Statements Model$],[$Event$,$Balance Sheet,Income Statement,$\backslash$table$[[$Statement of Cash$],[$Flows$]]],[$Assets$,=,$Liabilities,$\{+$

$\backslash$table$[[$Stockholders$\text{'}],[$Equity$]]\},$Revenue,Expense,$=,$Net Income$],[$Cash$,+,\backslash$table$[[$NRV$],[$Accounts$]]]]$