Exercise $5-4$A $($Algo$)$ Effect of recognizing uncollectible accounts expense on financial statements:

Percent of revenue allowance method LO $5-1$

Rosie Dry Cleaning was started on January $1,$ Year $1.$ It experienced the following events during its first two years of operation:

Events Affecting Year $1$

Provided $$30,250$ of cleaning services on account.

Collected $$24,200$ cash from accounts receivable.

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 $2$

Wrote off a $$227$ account receivable that was determined to be uncollectible.

Provided $$35,302$ of cleaning services on account.

Collected $$31,242$ cash from accounts receivable.

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 for each year.

b$.$ Determine the following amounts:

$(1)$ Net income for Year $1.$

$(2)$ Net cash flow from operating activities for Year $1.$

$(3)$ Balance of accounts receivable at the end of Year $1.$

$(4)$ Net realizable value of accounts receivable at the end of Year $1.$

c$.$ Determine the following amounts:

$(1)$ Net income for Year $2.$

$(2)$ Net cash flow from operating activities for Year $2.$

$(3)$ Balance of accounts receivable at the end of Year $2.$

$(4)$ Net realizable value of accounts receivable at the end of Year $2.$

Complete this question by entering your answers in the tabs below.

Determine the following amounts for the Year $1$ accounting period. $($Round your answers to nearest whole dollar amount.$)$

Balance of accounts receivable

Net realizable value of accounts receivable