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 $34,850 of cleaning services on account.
2. Collected $27,880 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 $261 account receivable that was determined to be uncollectible.
2. Provided $40,670 of cleaning services on account.
3. Collected $35,993 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

1. Organize the transaction data in accounts under an accounting equation for each year.
2. Determine the following amounts:

1. (1) Net income for Year 1.
2. (2) Net cash flow from operating activities for Year 1.
3. (3) Balance of accounts receivable at the end of Year 1.
4. (4) Net realizable value of accounts receivable at the end of Year 1.
5. Determine the following amounts:
6. (1) Net income for Year 2.
7. (2) Net cash flow from operating activities for Year 2.
8. (3) Balance of accounts receivable at the end of Year 2.
9. (4) Net realizable value of accounts receivable at the end of Year 2.