Exercise 7.4A Effect of recognizing uncollectible accounts statements: percent of revenue allowance method LO 7-1 expense on financial 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 $28,510 of cleaning services on account 2. Collected $22,808 cash from accounts receivable 3. 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 1. Wrote off a $214 account receivable that was determined to be uncollectible. 2. Provided $33,271 of cleaning services on account 3. Collected $29,445 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. Record the events for Year 1 and Year 2 in T-accounts. 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. Repeat Requirements b for the Year 2 accounting period