Please help me. Amswer in table form just as in the question for better understa

Question

Please help me. Amswer in table form just as in the question for better understanding. Thank you.

(Question 3i)

(Question 3ii)

Grover Inc. uses the allowance method to account for uncollectible accounts expense. Grover Inc. experienced the following four accounting events in 2018: 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 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). The first transaction is entered as an example. GROVER INC. Horizontal Statements Model Event No. sets Liabilities Equity Income Statement Cash Flow Retained Earnings Revenue Expense Net Income 2. 3.

Explanation / Answer

Question 3i:

Horizontal Statements Model

Question 3ii:

Event No. Assets = Liabilities + Equity Income Statement Cash flow Retained earnings Revenue - Expenses = Net Income 1. +92000 = NA + +92000 +92000 - NA = 92000 NA NA 2. NA = NA + NA NA - NA = NA +78000 OA 3. -720 = -720 + NA NA - NA = NA NA NA 4. NA = +9200 + -9200 NA - +9200 = -9200 NA NA

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