Exercise 7-4A (Algo) Effect of recognizing uncollectible accounts expense on financial statements: Percent of revenue allowance method LO 7.1 Rosie Dry Cleaning was started on January 1. Year t. It experienced the following events during its first two years of operation: Events Affecting Year 1 1. Provided $29,960 of cleaning services on account 2. Collected $23,968 cash from occounts receivable. 3. Adjusted the accounting records to reflect the estimate that uncollectible accounts expense would be 1 percent of the cleaning tevenue on account. Events Affecting Year 2 1. Wrote off a $225 account receivable that was determined to be uncollectible. 2. Provided $34,963 of cleaning services on account. 3. Collected $30,942 cash from accounts recelvable. 4. Adjusted the accounting records to reflect the estimate that uncollectible accounts expense would be 1 percent of the cleaning tevenue on account. Required: a. Organize the transaction data in accounts under an accounting equation for each yeat. 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 reaizable 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 activitios for Year 2 (3) Balance of accounts receivsble 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. Organiue the transaction data in sccounts under an accousting equatien for year 1