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 $31,280 of cleaning services on account.
2. Collected $25,024 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 Year 2

1. Wrote off a $235 account receivable that was determined to be uncollectible.
2. Provided $36,504 of cleaning services on account.
3. Collected $32,306 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. Record the events for Year 1 and Year 2 (including closing entries for Year 1) in T-accounts.

Cash Retained Earnings Year 1 Beg. Bal. 2. 25,024 cl 313 cl 365 31,280 cl 36,504 X cl 67,106 Bal. 25,024 End. Bal. Year 2 3. 32,306 End. Bal. 57,330 Accounts Receivable Service Revenue Year 1 Year 1 1. 31,280 25,024 2. cl 31,280 31,280 1. Bal. 6,256 Bal. Year 2 Year 2 2. 36,504 235 1. cl 36,504 X 36,504 2. 32,306 3. End. Bal. 10,219 End. Bal. Allowance for Doubtful Accounts Uncollectible Accounts Expense Year 1 Year 1 313 3. 3. 313 313 cl Bal. 313 Bal. Year 2 Year 2 1. 235 365 4. 4. 365 365 cl End. Bal. 443 End. Bal