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2 Exercise 7-4A (Algo) 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 It experienced the following events during ts first two years of operation: Events Affecting Year 1 Roh 1. Provided $26,250 of cleaning services on account 2. Collected $21000 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 $197 account receivable that was determined to be uncollectible. 2. Provided $30,634 of cleaning services on account. 3. Collected $27.111 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 realizable value of accounts receivable at the end of Yeart 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. Reg A1 Reg A2 Req Rec 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.) ROSIE DRY CLEANING Accounting Equation for Year 1 Balance Sheet Assets Uabilities Equity NRV Cash Retained Accounts Recevable Earnings 21.000 Event Account Titles for Retained Earnings 1. 2 3 Bal 21.000 0 0 Req A2 > Print Complete this question by entering your answers in the tabs below. Req AI Reg A2 Req Reg Organize the transaction data in accounts under an accounting equation for Year 2. (Enter any decreases to account balances with a minus sign. Not al otlls require input.) ROSIL DRY CLEANING Accounting Equation for Year 2 Llalance Sheet Assets Liabilities Equity NKV Accounts Retained Receivable Earnings Event Account Titles for Retained Earnings Cash . BO Bu 1 2 3 4 Bal ++++ 0. Complete this question by entering your answers in the tabs below. Reg A1 Req A2 Req B Reg C Determine the following amounts for the Year 1 accounting period. (Round your answers to nearest whole dollar amount.) Net Incomo Not cash flow from operating activities Balance of accounts receivable Net realitzable value of accounts receivable Complete this question by entering your answers in the tabs below. Reg A1 Reg A2 Reg B Reqc Determine the following amounts for the Year 2 accounting period. (Round your answers to nearest whole dollar amount.) Net Income Net cash flow from operating activities Balance of accounts receivable Net realizable value of accounts receivable ( ReqB Rec