Exercise 7 4A 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 Provided $34,970 of cleaning services on account Collected $27,976 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 $262 account receivable that was determined to be uncollectible Provided $40,810 of cleaning services on account Collected $36,117 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 Record the events for Year 1 and Year 2 in T accounts PLEASE SHOW STEP BY STEP STUCK ON RETAINED EARNINGS Required A Required B Required C Record the events for Year 1 and Year 2 in T accounts (Round your answers to nearest whole dollar ) Cash Year 1 Beg Bal 27,976 01 27,976 Retained Earnings 0 0 34,970cl 0101 L 34,970 Bal End Bal Year 2 3 36,1170 End Bal 64,093 Accounts Receivable Year 1 Year 1 Service Revenue 0 34,970 34,970 1 0 0 34 970 0 6,994 27,97612 0 Bal Bal Year 2 Year 2 40,810 40,8102 36,1173 2621 0 40,810 End Bal 11,425 End Bal Allowance for Doubtful Accounts Uncollectible Accounts Expense Year 1 7 Year 1 OP 350 3 350 0 350 cl 0 Bal 350 Year 2 Year 2 01 2621 408 4 001 496 408 01 408 End Bal End Bal

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Exercise 7-4A Effect of recognizing uncollectible accounts expense on financial statements: percent of revenue allowance method LO 7-1 Rosie Dry Cleaning was started on January

Exercise 7-4A 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

Provided $34,970 of cleaning services on account.
Collected $27,976 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 $262 account receivable that was determined to be uncollectible.
Provided $40,810 of cleaning services on account.
Collected $36,117 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. Record the events for Year 1 and Year 2 in T-accounts.

PLEASE SHOW STEP-BY-STEP.

**STUCK ON RETAINED EARNINGS

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Required A Required B Required C Record the events for Year 1 and Year 2 in T-accounts. (Round your answers to nearest whole dollar.) Cash Year 1 Beg. Bal. 27,976 01 27,976 Retained Earnings 0 0 34,970cl 0101 L 34,970 Bal. End. Bal. Year 2 3. 36,1170 End. Bal. 64,093 Accounts Receivable Year 1 Year 1 Service Revenue 0 34,970 34,970 1. 0 0 34.970 0 6,994 27,97612 0 Bal. Bal. Year 2 Year 2 40,810 40,8102 36,1173 2621. 0 40,810 End. Bal. 11,425 End. Bal. Allowance for Doubtful Accounts Uncollectible Accounts Expense Year 1 7 Year 1 OP 350 3. 350 0 350 cl 0 Bal 350 Year 2 Year 2 01 2621 408 4. 001 496 408 01 408 End. Bal. End. Bal