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 $$37,800$ of cash revenue and $$9,450$ of

revenue on account. Cash operating expenses were $$26,662.$ After numerous attempts to collect a $$244$ 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$).$ Use $"$NC$"$ for net change in cash. Leave blank to indicate that

an element is not affected by the event.

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

c$.$ Prepare the general journal entries for the four accounting events.

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 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$).$ Use $"$NC$"$ for net

change in cash. Leave blank to indicate that an element is not affected by the event. $($Enter any decreases to account balances and cash outflows with a minus sign.$)$