2 2 po Exercise 7-5A (Algo) Analyzing financial statement effects of occounting for uncollectible accounts using the percent of revenue allowance method LO 7-1 Grover inte uses the allowance method to account for uncollectible accounts expense Grover Inc experienced the following four accounting events in Yeart eo 1. Recognced $86,000 of revenue on account 2 Collected $80.000 cash from accounts receivable 3. Wrote off uncollectible accounts of 1400 4. Recognized uncollectible accounts expense Grover estimated that uncollectible accounts expense will be 2 percent of sales on account HE Required .. Show the effect of each event on the elements of the financial statements, using a horizontal statements model like the one shown next. The first transaction is entered as an example (Use for increase - for decrease, or for increase and decrease in the Staument of Cash Flows column. Indicate whether the item is an operating activity (OA). Investing activity (1A), or financing activity (FA). Not all cells will require input) ce Balance Sheet Event No Korontal Statement Model Income Statement Stockholm Equity Revenue pose Net Income State of Cash Flow + 1 2 4 +