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Grover Incorporated uses the allowance method to account for uncollectible accounts expense. Grover Incorporated experienced the following four accounting events in Year $1$:

Recognized $$79,000$ of revenue on account.

Collected $$73,000$ cash from accounts receivable.

Wrote off uncollectible accounts of $$1,050.$

Recognized uncollectible accounts expense. Grover estimated that uncollectible accounts expense will be $3$ percent of sales on account.

Required

$1$ Show the effect of each event on the elements of the financial statements, using a horizontal statements model. Use $+$ for increase, $$ for decrease, and blank for not affected. In the Statement of Cash Flows column, indicate whether the item is an operating activity $($OA$),$ investing activity $($IA$),$ financing activity $($FA$),$ or not affected $($blank$).$ The first transaction is entered as an example.

Record the previous transactions in general journal form.

$2$ Record the previous transactions in general journal form

question $2$

the following information is available for Market, Incorporated and Supply, Incorporated at December $31.$

qtAccounts Market, Incorporated Supply, Incorporated

Accounts receivable $$60,400$ $$77,200$

Allowance for doubtful accounts $2,9482,256$

Sales revenue $646,960927,100$

Required

$1$ What is the accounts receivable turnover for each of the companies?

$2$ What is the average days to collect the receivables?

$3$ Assuming both companies use the percent of receivables allowance method, what is the estimated percentage of uncollectible accounts for each company?

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