Grover Inc. uses the allowance method to account for
uncollectible accounts expense. Grover Inc. experienced the
following four accounting events in Year 1:
Required
a. Show the effect of each event on the elements of the financial
statements, using a horizontal statements model like the one shown
next. Use + for increase and − for decrease. In the Statement of
Cash Flows column, indicate whether the item is an operating
activity (OA), investing activity (IA), or financing activity (FA).
Columns for events that have no effect on any of the elements
should be left blank. The first transaction is entered as an
example. (Note: Not all cells will require an input.)
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