Question
Rosie Dry Cleaning was started on January 1, 2016. It experienced the following events during its first two years of operation: Events Affecting 2016 1.
Rosie Dry Cleaning was started on January 1, 2016. It experienced the following events during its first two years of operation: Events Affecting 2016 1. Provided $32,530 of cleaning services on account. 2. Collected $26,024 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 2017 1. Wrote off a $244 account receivable that was determined to be uncollectible. 2. Provided $37,963 of cleaning services on account. 3. Collected $33,597 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 2016 and 2017 in T-accounts.(Round your answers to nearest whole dollar.) b. Determine the following amounts: (Round your intermediate calculations to nearest whole dollar.) c. Repeat Requirements b for the 2017 accounting period. (Round your intermediate calculations to nearest whole dollar.)
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