Patel Service Company does make a few sales on account bus is mostly a cash business. Consequertly, it uses the direct write-off mothod to account for uncollectible accounts. During Year 1, Patel Service Company earned $34,550 of cash revenue and $8.638 of revenue on accourt. Cash operating expenses were $21,561. Afer numerous attempts to collect a $288 accoumt recewable from $ am stephens, the account was determined to be uncollectible in Year 1. Pequired: a. Show the effects of (t) cash revenue, (2) revenue on account, (3) cash expences, and (4) withe off of the uncollectble account on the financial statements using a horizontal statements model. In the Statement of Cash Flows column, indlcate whither the item is an operating activity (OA). inwestung activey (LA), or finanding activity (FA). b. What amount of net income did Patel Service Company report on the Year 1 income statement? Complete this question by entering vour answers in the tabs below. statements model. (OA) imvesting activisy (LA), or finanoing activey (FA). Not alf cells require input. 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 $34,550 of cash revenue and $8,638 of revenue on account. Cash operating expenses were $21,561. After numerous attempts to collect a $288 account recelvable 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. What amount of net income did Patel Service Company report on the Year 1 income statement