Exercise 7-AA (Algo) Effect of recognizing uncollectible accounts expense on financial statements: Percent of revenue allowance method LO 7-1 Rosie Dry Cleaning was started on Jahuay 1, Year 1 it experienced the following events during its first two years of operationt Events Affecting Year 1 1. Provided $29,960 of cleaning services on account 2. Colected $23,968 cash from accounts teceivable 3. Adjusted the accourting records to refect the estimate that uncollectiale accounts expense would be 1 percent of the clesaing revenue on account. Events Affecting Year 2 1. Wrote of a $225 account receivable that was determined to be uncollectble. 2. Provided $34,963 of cleaning services on account. 3. Colected $30.942 cash from accounts receivable. 4. Adjusted the accounting recerds to reflect the estinate that uncollectble accounts espense would be 1 percent of the ciesing reventie on occount. Required: A. Organise the transaction data in accounts under an accounting equation for each year. b. Deteimitie the folfowing amounts: (v) Net income for Year 1 . (2) Net cash fiow from operating sctivities for Year 1 (3) Balance of accounts receivable at the end of Yeor 1 (4) Net reaizable value of accounts tecelvable it the end of Yeat 1. c. Determine the following amounts: (1) Net income for Year 2 . (2) Net cash flow from coperating activites for Year 2 . (3) Betance of accounts recelvable ot the end of Yeat 2 . (4) Net realiable value of eccounts recelvable of the end of Year 2 . Complete this question by entering your answers in the tabs below. Oeterveine the following ameunts he the year 1 accounting peripd