Hughes Dry Cleaning was started on January 1, 2011. It experienced the following events during its first two years of operation.

Events Affecting 2011
1. Provided \(\$ 10,000\) of cleaning services on account.

2. Collected \(\$ 8,000\) cash from accounts receivable.

3. Adjusted the accounting records to reflect the estimate that uncollectible accounts expense would be 1 percent of the cleaning revenue on account.

Events Affecting 2012
1. Wrote off an \(\$ 80\) account receivable that was determined to be uncollectible.

2. Provided \(\$ 12,000\) of cleaning services on account.

3. Collected \(\$ 10,000\) cash from accounts receivable.

4. Adjusted the accounting records to reflect the estimate that uncollectible accounts expense would be 1 percent of the cleaning revenue on account.

Required

a. Record the events for 2011 in T-accounts.

b. Determine the following amounts:

(1) Net income for 2011.

(2) Net cash flow from operating activities for 2011.

(3) Balance of accounts receivable at the end of 2011.

(4) Net realizable value of accounts receivable at the end of 2011.

c. Repeat Requirements \(a\) and \(b\) for the 2012 accounting period.