Events Affecting Year 1 1. Provided $29,920 of cleaning services on account. 2. Collected $23,936 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 Year 2 1. Wrote off a $224 account receivable that was determined to be uncollectible. 2. Provided $34.917 of cleaning services on account. 3. Collected $30,902 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. Organize the transaction data in accounts under an accounting equation. b. Determine the following amounts: 1. (1) Net Income for Year 1. 2. (2) Net cash flow from operating activities for Year 1. 3. (3) Balance of accounts receivable at the end of Year 1. 4.(4) Net realizable value of accounts receivable at the end of Year 1. c. Determine the following amounts: 1. (1) Net income for Year 2. 2. (2) Net cash flow from operating activities for Year 2. 3. (3) Balance of accounts receivable at the end of Year 2. 4. (4) Net realizable value of accounts receivable at the end of Year 2. ROSIE DRY CLEANING Accounting Equation for the Year 1 Balance Sheet Assets Equity Accounts Retained Allowance Receivable Earnings Event Accounts Titles for Retained Earnings Cash 1. + - + N 3. + Bal. 0 + 0 0 0 ROSIE DRY CLEANING Accounting Equation for the Year 2 Balance Sheet Assets Equity Accounts Titles for Retained Earnings Accounts Retained Receivable Allowance Earnings Event Cash + Bal. 1. + + + 2. 3. 4. + + + Bal. 0 + 0 0 = 0 Net income Net cash flow from operating activities Balance of accounts receivable Net realizable value of accounts receivable Net income Net cash flow from operating activities Balance of accounts receivable Net realizable value of accounts receivable