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Patel Service Company does make a few sales on account but is mostly a cash business. Consequently, it uses the direct wite-oft method to account

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Patel Service Company does make a few sales on account but is mostly a cash business. Consequently, it uses the direct wite-oft method to account for uncollectible occounts. During Year 1, Patel Service Company earned $35,000 of cash revenue and $4,500 of revenue on occount Cash operating expenses were $19,000 After numerous attempts to collect a $120 account receivable from 5am Stephens, the account wos determined to be uncollect ble 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 octivity (OA), investing octivity (A), 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) cashi revenue, (2) revenue on account, (3) cash expenses, and (4) write aff of the uncollectible actount on the financial statements using a horitental statements model. In the Statement of Cash Flows column, indicate whether the itern is an operating activity (OA), investing activity (LA), or financing activity (IA), Use "NC" for net change in cash. Leave biank to indicate that an element is not affected by the event. (Enter any decreases to account balances and cash outflows with a minus siani)

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