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 1. It experienced the following events during its first two years of operation: Events Affecting Year 1 1. Provided $34,670 of cleaning services on account 2. Collected $27736 cash from accounts receivable. 3. Adjusted the accouning 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 $260 account receivable that was determined to be uncollectible. 2. Provided $40,460 of cleaning services on account 3. Collected $35,807 cash from accounts receivable 4. Adjusted the accounting records to reflect the estimate that uncollectible accounts expense would be percent of the cleaning revenue on account Prey 1 of 5 !!! Next > 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. Req A1 Reg A2 ReqB Reg C -- HARRIVAL Prey 1 of 5 Next > 120 (21) Pistol Shrimp Text Book Nova Tex Dine On Campus at. Russia: Revolution JNT Journal Viewe.. (1) Ranger Ran 1 Chapter 7 Homework Saved Help Save & Exit Check Req A1 Reg A2 ReqB Reqc Organize the transaction data in accounts under an accounting equation for Year 1. (Enter any decreases to account balances with a minus sign. Not all cells require input.) ROSIE DRY CLEANING Accounting Equation for Year 1 Balance Sheel Assets Liabilities Equity Account Titles for Retained Event Earnings NRV Accounts Retained Cash Receivable Earnings 1 2 3 Bal Req A2 > Req A1 Reg A2 Reqs Reqc Is Book Hint Organize the transaction data in accounts under an accounting equation for Year 2. (Enter any decreases to account balances with minus sign. Not all cells require input.) ROSIE DRY CLEANING Accounting Equation for Year 2 Balance Sheet Assets Event Liabilities Equity Account Titles for Retained Retained Earnings NRV Accounts Cash Receivable Earnings Bal 1 2 3 4 Print erences Bal. 0+ 0 Prey 1 of 5 Next > Check Complete this question by entering your answers in the tabs below. Reg A1 Reg A2 ReqB Reqc Determine the following amounts for the Year 1 accounting period. (Round your answers to nearest whole dollar amount.) Net income Net cash flow from operating activities Balance of accounts receivable Net realizable value of accounts receivable Help Saved al Chapter 7 Homework Check my Complete this question by entering your answers in the tabs below. Req A1 Reg AZ Reqc Req B Determine the following amounts for the Year 2 accounting period. (Round your answers to nearest whole dollar amount.) Net income Net cash flow from operating activities Balance of accounts receivable Net realizable value of accounts receivable