Answer full question. Grover Inc. uses the allowance method to account for uncollectible accounts expense. Grover Inc. experienced the following fouraccounting events in Year 1:1. Recognized $78,000 of revenue on account.2. Collected $72,000 cash from accounts receivable.3. Wrote off uncollectible accounts of $1,000.4. Recognized uncollectible accounts expense, Grover estimated that uncollectible accounts expense will be 2 percent of sales onaccount.edRequireda. Show the effect of each event on the elements of the financial statements, using a horizontal statements model like the one shownnext. 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 leftblank. The first transaction is entered as an example. (Note: Not all cells will require an input.)kTEffect of Events on the Financial StatementsIncome StatementCash FlowBalance SheetStockholders'EquityRevenueExpenseNet IncomeEventAssetsLiabilities1.%3D3.4. Requireda. Show the effect of each event on the elements of the financial statements, using a horizontal statements model like the one shownnext. 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 leftblank. The first transaction is entered as an example. (Note: Not all cells will require an input.)TEffect of Events on the Financial StatementsBalance SheetIncome StatementCash FlowStockholders'+ExpenseNet IncomeAssetsLiabilitiesRevenue%3DEvent%3DEquity1.%3D2.%3D3.4.%3DNoxt

Uncollectible accounts expense When a customer misses on a payment, an uncollectible accounts…

Grover Inc. uses the allowance method to account for uncollectible acco accounting events in Year 1: 1. Recognized $78,000 of revenue on account. 2. Collected $72,000 cash from accounts receivable. 3. Wrote off uncollectible accounts of $1,000. 4. Recognized uncollectible accounts expense. Grover estimated that un