How would I solve this Ultra Day Spa provided $87,750 of services during Year 1....
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Accounting
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Ultra Day Spa provided $87,750 of services during Year 1. All customers paid for the services with credit cards. Ultra submitted the credit card receipts to the credit card company immediately. The credit card company paid Ultra cash in the amount of face value less a 3 percent service charge. Requireda. Show the credit card sales (Event 1) and the subsequent collection of accounts receivable (Event 2) in a horizontal statements model like the one shown next. In the Statement of Cash Flows column, indicate whether the item is an operating activity (OA), investing activity (IA), or financing activity (FA). (Enter any decreases to account balances with a minus sign. Not all cells in the "Statement of Cash Flows" column may require an input - leave cells blank if there is no corresponding input needed.)
ULTRA DAY SPA
Horizontal Statements Model
Balance Sheet
Income Statement
Assets
=
Liab.
+
Equity
Statement of
Event
Cash
+
Acct. Rec.
Ret. Ear.
Revenue
Expense
=
Net Income
Cash Flows
1.
+
=
+
=
2.
+
=
+
=
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