Help 10 5 points Exercise 7-4A (Algo) 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 1. It experienced the following events during its first two years of operation Events Affecting Year 1 Bock 1. Provided $27,080 of cleaning services on account. 2. Collected $21,664 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 Seferences Events Affecting Year 2 1. Wrote off a $203 account receivable that was determined to be uncollectible 2. Provided $31602 of cleaning services on account 3. Collected $27968 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 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 realizablo value of accounts receivable at the end of Year 1 c.Determine the following amounts: | 10 Events Affecting Year 2 pints 1. Wrote off a $203 account receivable that was determined to be uncollectible, 2. Provided $31,602 of cleaning services on account 3. Collected $27.968 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. eBook References 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 Reg 8 Red C 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.) ts Complete this question by entering your answers in the tabs below. Book Reg A1 Reg A2 Reg B 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.) erences ROSIE DRY CLEANING Accounting Equation for Year 1 Balance Sheet Assets Liabilities Equity NRV Retained Accounts Receivable Earnings Event Account Titles for Retained Earnings Cash 1. 2 3 Bal 0 0 0 + 0 (RAI Req A2 > ts Complete this question by entering your answers in the tabs below. Book Reg A1 Reg A2 Reg B 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.) erences ROSIE DRY CLEANING Accounting Equation for Year 1 Balance Sheet Assets Liabilities Equity NRV Retained Accounts Receivable Earnings Event Account Titles for Retained Earnings Cash 1. 2 3 Bal 0 0 0 + 0 (RAI Req A2 > Complete this question by entering your answers in the tabs below. Reg A1 Reg A2 Reg B Reqc Organize the transaction data in accounts under an accounting equation for Year 2. (Enter any decreases to account balances with a minus sign. Not all cells require input.) ces ROSIE DRY CLEANING Accounting Equation for Year 2 Balance Sheet Assets Llabilities Equity NRV Accounts Retained Receivable Earnings Event Account Titles for Retained Earnings Cash 4 Bal 1. 2 + 3. 4 Bal .. 0 0 Salaries expense Service revenue Uncollectible accounts expense Req 83 nts (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 eBook Complete this question by entering your answers in the tabs below. References Reg A1 Reg AZ Reg Reqc Determine the following amounts for the Year 2 accounting period. (Round your answers to nearest whole dollar amount.) Not income Net cash flow from operating activities Balance of accounts receivable Net realizable value of accounts receivable
