Pate Bros. uses the allowance method to account for uncollectible accounts expense. Pate experienced the following four events in 2013:
1. Recognized $68,000 of revenue on account.
2. Collected $62,000 cash from accounts receivable.
3. Determined that $500 of accounts receivable were not collectible and wrote them off.
4. Recognized uncollectible accounts expense for the year. Pate estimates that uncollectible accounts expense will be 2 percent of its sales.

Required
a. Show the effect of each of these events on the elements of the financial statements, using a horizontal statements model like the following one. Use + for increase, €“ for decrease, and NA for not affected. In the cash flow column, indicate whether the item is an operating activity (OA), investing activity (IA), or financing activity (FA).

b. Record the above transactions in general journalform.

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Assets - Liab.Equity e Exp. Net Inc. Cash Flow xp.Net Inc. Cash Flow Event No. Cash +Net Realizable Value of Rec. Ret. Earn.