Exercise 7-4A Effect of recognizing uncollectible accounts expense on financial statements: Percent of revenue allowance method LO 7-1 Rosle Dry Cleaning was started on January 1 Year it experienced the following events during its fast two years of operation Events Affecting Year 1 1 Provided $25,070 of cleaning services on account 2 Collected $20,050 cash from accounts receivable. 3. Ad usted 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 1 Wrote off a $188 account receivable that was determined to be uncollectible 2. Provided $29,257 of cleaning services on account 3. Collected $25,892 cash from accounts receivable. 4. 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 b. Determine the following amounts: 1 1 Net income for Year 1 2 (2) Net cash flow from operating activities for Year 1. 3. B Balance of accounts receivable at the end of Year 1 4. (4) Net realizable value of accounts receivable at the end of Year 1 c. Determine the following amounts: 1 (1) Net income for Year 2 2 (2) Net cash flow from operating activities for Year 2 3. (3) Balance of accounts receivable at the end of Year 2 4. (4) Net realizable value of accounts receivable at the end of Year 2 Complete this question by entering your answers in the tabs below. RAGAL Organize the transaction data in accounts under an accounting equation for Year 1. Enter any decreases to account balanced with a minuten. Not all cits in the "Accounts Titles for Retained lamang alumn may require an input leave on blank there is no corresponding Retired Earnings input needed ROSE DRY CLEANING Accounting Equation for the Year 1 Account Tube for R Earning ed Reg A2) 1. (1) Net income for Year 2 2. (2) Net cash flow from operating activities for Year 2. 3. (3) Balance of accounts receivable at the end of Year 2. 4. (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 Req A2 Reg B Reqc Organize the transaction data in accounts under an accounting equation for Year 2. (Enter any decreases to minus sign. Not all cells in the "Accounts Titles for Retained Earnings" column may require an input - leave corresponding Retained Earnings input needed.) ROSIE DRY CLEANING Accounting Equation for the Year 2 Balance Sheet Assets Equity Accounts Titles for Retained Earnings - Retained Receivable Allowance Earnings Event Cash + Accounts Bal Bal Complete this question by enteriny you are Req A1 Req A2 Req B Reqc Determine the following amounts for the Year 2 accounting period. (Round your ans. Net income Net cash flow from operating activities Balance of accounts receivable Net realizable value of accounts receivable