Loveless Corporation had the following 2019 income statement.
Revenues.....................$100,000
Expenses........................60,000
.................................$ 40,000
In 2019, Loveless had the following activity in selected accounts.

Prepare Loveless's cash flows from operating activities section of the statement of cash flows using
(a) The direct method
(b) The indirect method.

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Accounts Receivable Allowance for Doubtful Accounts 1,200 1/1/19 1/1/19 20,000 Revenues 100,000 1,000 Write-offs Write-offs 1,000 1,840 Bad debt expense 90,000 Collections 2,040 12/31/19 12/31/19 29,000