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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 $25,240 of cleaning services on account 2. Collected $20,192 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 $189 account receivable that was determined to be uncollectible, 2. Provided $29,455 of cleaning services on account. 3. Collected $26,068 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 2. 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 Organize the transaction data in accounts under an accounting equation for Year 1. (Enter any decre minus sign. Not all cells require input.) 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 + 11 1. 2. = 11 3. Bal. 01 + 01 0 + 0 ROSIE DRY CLEANING Accounting Equation for Year 2 Balance Sheet Assets Liabilities Equity NRV Accounts Retained Receivable Earnings Event Account Titles for Retained Earnings Cash Bal. 1. 2 3. 4 Bai. 0 0= Net income Net cash flow from operating activities Balance of accounts receivable Net realizable value of accounts receivable Net income Net cash flow from operating activities Balance of accounts receivable Net realizable value of accounts receivable

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