Required information

Problem $5-26$A $($Algo$)$ Accounting for notes receivable and uncollectible accounts using the percent of sales allowance method LO $5-1,5-4$

$[$The following information applies to the questions displayed below.$]$

The following transactions apply to Hooper Co$.$ for Year $1,$ its first year of operations:

Issued $$130,000$ of common stock for cash.

Provided $$100,000$ of services on account.

Collected $$88,000$ cash from accounts receivable.

Loaned $$11,000$ to Mosby Co$.$ on November $30,$ Year $1.$ The note had a one$-$year term to maturity and a $6$ percent interest rate.

Paid $$34,000$ of salaries expense for the year.

Paid a $$2,000$ dividend to the stockholders.

Recorded the accrued interest on December $31,$ Year $1($see item $4).$

Estimated that $1$ percent of service revenue will be uncollectible.

sales allowance method LO $5-1,5-4$

$[$The following information applies to the questions displayed below.$]$

The following transactions apply to Hooper Co$.$ for Year $1,$ its first year of operations:

Issued $$130,000$ of common stock for cash.

Provided $$100,000$ of services on account.

Collected $$88,000$ cash from accounts receivable.

Loaned $$11,000$ to Mosby Co$.$ on November $30,$ Year $1.$ The note had a one$-$year term to maturity and a $6$ percent interest rate.

Paid $$34,000$ of salaries expense for the year.

Paid a $$2,000$ dividend to the stockholders.

Recorded the accrued interest on December $31,$ Year $1($see item $4).$

Estimated that $1$ percent of service revenue will be uncollectible.

Problem $5-26$A $($Algo$)$ Part a

Required

a$.$ Show the effects of these transactions in a horizontal statements model like the one shown below. $($Do not round your intermediate calculation and round your final answer to the nearest whole dollar. Enter any decreases to account balances and cash outflows with a minus sign. In the Cash Flow column, use OA to designate operating activity, IA for investment activity, FA for financing activity, and NC for net change in cash. If there is no effect on the Statement of Cash Flow, leave the cell blank. Not all cells will require entry.$)$

$\backslash$table$[[$HOOPER CO$.],[$Horizontal Statements Model$],[$Balance Sheet$],[\backslash$table$[[$Event$],[$No$.]],$Assets,$=,$Equity,Income Statement,$\{$

$\backslash$table$[[$Statement of Cash$],[$Flow$]]\}],[$Cash$,+,\backslash$table$[[$NRV$],[$Accounts$],[$Receivable$]],+,\backslash$table$[[$Notes$],[$Receivable$]],+,\backslash$table$[[$Interest$],[$Receivable$]],=,\backslash$table$[[$Common$],[$Stock$]],+,\backslash$table$[[$Retained$],[$Earnings$]],$Revenue,$-,$Expense,$=,$Net Income$],[1.,,+,,+,,+,,=,,+,,,-,,=,,$L$,],[2.,,+,,+,,+,,=,,+,,,-,,=,,$r$,$r$],[3.,,+,,+,,+,,=,,+,,,-,,=,,$L$,$