Problem: Module 2 Textbook Problem 2 Learning Objective: 2-2 Use the percent of revenue method to account for uncollectible accounts expense The following account balances come from the records of Ourso Company: Accounts receivable Allowance for doubtful accounts. Beginning Balance $2,695 134 Ending Balance $3,705 175 During the accounting period, Ourso recorded $11,950 of sales revenue on account. The company also wrote off a $168 account receivable. Required a. Determine the amount of cash collected from receivables. b. Determine the amount of uncollectible accounts expense recognized during the period. a. Collections of accounts receivable b. Uncollectible accounts expense Problem: Module 2 Textbook Problem 3 Learning Objective: 2-2 Use the percent of revenue method to account for uncollectible accounts expense Grover Inc. uses the allowance method to account for uncollectible accounts expense. Grover Inc. experienced the following four accounting events in Year 1: 1. Recognized $92,000 of revenue on account. 2. Collected $78,000 cash from accounts receivable. 3. Wrote off uncollectible accounts of $720. 4. Recognized uncollectible accounts expense. Grover estimated that uncollectible accounts expense will be 1 percent of sales on account. Required Show the effect of each event on the elements of the financial statements, using a horizontal statements model like the one shown here. Use the following coding scheme to record your answers: increase is +, decrease is -, leave the cell blank for not affected. In the cash flow column, indicate whether the item is an operating activity (OA), Investing activity (IA), or financing activity (FA). The first transaction is entered as an example. GROVER INC, Horizontal Statements Model Event No. Assets Liabilities + Equity Income Statement Cash Flow Retained Revenue Expense Net Income Earnings 1. 2. 3. 4.