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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 write - off method
Patel Service Company does make a few sales on account but is mostly a cash business. Consequently, it uses the direct writeoff method to account for uncollectible accounts. During Year Patel Service Company earned $ of cash revenue and $ of revenue on account. Cash operating expenses were $ After numerous attempts to collect a $ account receivable from Sam Stephens, the account was determined to be uncollectible in Year
Required:
Show the effects of
cash revenue,
revenue on account,
cash expenses, and
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
What amount of net income did Patel Service Company report on the Year income statement?
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