Exercise 3-9A (Algo) Recording receivables and identifying their effect on financial statements LO 3-1 Davos Company performed services on account for $64,000 in Year 1. Davos collected $51,200 cash from accounts receivable during Year 1, and the remaining $12,800 was collected in cash during Year 2. Required a. e. & f. Record the Year 1 transactions in T-accounts and close the Year 1 Service Revenue account to the Retained Earnings account. Record the Year 2 cash collection in the appropriate T-accounts. b. & g. Show the Year 1 and Year 2 transactions in a horizontal statements model. c. Determine the amount of revenue Davos would report on the Year 1 income statement. d. Determine the amount of cash flow from operating activities Davos would report on the Year 1 statement of cash flows. h. Assuming no other transactions occur in Year 2, determine the amount of net income and the net cash flow from operating activities for Year 2. Complete this question by entering your answers in the tabs below. Req A E and F Req B and G Req C Req D Req H Record the Year 1 transactions in T-accounts and close the Year 1 Service Revenue account to the Retained Earnings account. Record the Year 2 cash collection in the appropriate T-accounts. (Select "1, 2, or 3" for the transactions in the order they take place. Select "c" for closing entries.) Assets Cash Accounts Receivable Year 1 2. 51,200 0 Year 1 1. 64,000 51,2002. of 0 End. Bal. Year 2 51,200 End. Bal. Year 2 0 12,800 3. 12,800 0 of 0 0 12,800 3. 0 End. Bal. 64,000 End. Bal. Stockholders' Equity Retained Earnings Service Revenue Year 1 Year 1 0 64,000 cl cl 64,000 64,000 1. 0 OP End. Bal. 64,000 End. Bal. Year 2 Year 2 o 0 0 0 0 End. Bal. 64,000 End. Bal. < Req A E and F Req B and G >