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 $26,840 of cleaning services on account. 2. Collected $21,472 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 $201 account receivable that was determined to be uncollectible. 2. Provided $31,322 of cleaning services on account. 3. Collected $27,720 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 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. 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. II + + + II + 2. 3. + II + Bal. + II 0 + 0 ROSIE DRY CLEANING Accounting Equation for Year 2 Balance Sheet Assets Liabilities Equity NRV Accounts Retained Receivable Earnings 0 + Event Account Titles for Retained Earnings Cash + + Bal. 1. + + + 2. + + 3. + 4. + + Bal. 0 + 0 = 0 + Determine the following amounts for the Year 1 accounting period. Net income Net cash flow from operating activities Balance of accounts receivable Net realizable value of accounts receivable Determine the following amounts for the Year 2 accounting period. Net income Net cash flow from operating activities Balance of accounts receivable Net realizable value of accounts receivable