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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

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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 $28,820 of cleaning services on account. 2. Collected $23.056 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 $216 account receivable that was determined to be uncollectible. 2. Provided $33,633 of cleaning services on account. 3. Collected $29.765 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 Year 1 and Year 2 in T-accounts. 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 recelvable at the end of Year 1. c. Repeat Requirements b for the Year 2 accounting period. Required A Required B Required c Record the events for Year 1 and Year 2 in T-accounts. (Round your answers to nearest whole dollar.) Cash Retained Earnings Year 1 Beg Bal. End. Bal. Bal. Year 2 End. Bal. Accounts Receivable Service Revenue Year 1 Year 1 Bal Bal. Year 2 Year 2 End. Bal End. Bal. Allowance for Doubtful Accounts Uncollectible Accounts Expense Year 1 Year 1 Bal Bal Year 2 Year 2 End, Bal. End, Bal. HAR Required B > NEY Required b Required A Determine the following amounts: (Round your intermediate calculations to nearest whole dollar.) (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. Sh. (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

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