CB Winter Sports specializes in providing ski lessons to beginners. The company uses the allowance method to account for uncollectible accounts expense CB Winter Sports experienced the following four accounting events in Year 1: 1. Recognized $266,000 of revenue on account. 2. Collected $126,000 cash from accounts receivable. 3. Wrote off uncollectible accounts of $2,300, 4. Recognized uncollectible accounts expense, CB Winter Sports estimated that uncollectible accounts expense will be 3 percent of sales on account Required: Use a horizontal financial statements model to show how each event affects the balance sheet, income statement, and statement of cash flows. More specifically, record the amounts of the events into the model. Also, in the Statement of Cash Flows column, classify the cash flows as operating activities (OA), investing activities (IA), or financing activities (FA) The first transaction is shown as an example. Note: Enter any decreases to account balances and cash outflows with a minus sign. Leave cells blank if no input is needed. Balance Sheet Income Statement Assets Liabilities Stockholders' Equity Event Number Net Realizable Value of Accounts Cash Accounts Payable Common Stock Retained Earnings Revenue Expenses- Net Income Statement of Cash Flows Receivable 1. + 266,000 266,000 266,000 266,000 = 2. 3. 4. Total + 0+ 266,000 = 266,000 266,000 0= 266,000 0 NC "NC Net change in cash

CB Winter Sports specializes in providing ski lessons to beginners. The company uses the allowance method to account for uncollectible accounts expense CB Winter Sports experienced the following four accounting events in Year 1: 1. Recognized $266,000 of revenue on account. 2. Collected $126,000 cash from accounts receivable. 3. Wrote off uncollectible accounts of $2,300, 4. Recognized uncollectible accounts expense, CB Winter Sports estimated that uncollectible accounts expense will be 3 percent of sales on account Required: Use a horizontal financial statements model to show how each event affects the balance sheet, income statement, and statement of cash flows. More specifically, record the amounts of the events into the model. Also, in the Statement of Cash Flows column, classify the cash flows as operating activities (OA), investing activities (IA), or financing activities (FA) The first transaction is shown as an example. Note: Enter any decreases to account balances and cash outflows with a minus sign. Leave cells blank if no input is needed. Balance Sheet Income Statement Assets Liabilities Stockholders' Equity Event Number Net Realizable Value of Accounts Cash Accounts Payable Common Stock Retained Earnings Revenue Expenses- Net Income Statement of Cash Flows Receivable 1. + 266,000 266,000 266,000 266,000 = 2. 3. 4. Total + 0+ 266,000 = 266,000 266,000 0= 266,000 0 NC "NC Net change in cash