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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

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 $27,010 of cleaning services on account.
  2. Collected $21,608 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 $203 account receivable that was determined to be uncollectible.
  2. Provided $31,521 of cleaning services on account.
  3. Collected $27,896 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:
  3. (1) Net income for Year 1.
  4. (2) Net cash flow from operating activities for Year 1.
  5. (3) Balance of accounts receivable at the end of Year 1.
  6. (4) Net realizable value of accounts receivable at the end of Year 1.
  7. Determine the following amounts:
  8. (1) Net income for Year 2.
  9. (2) Net cash flow from operating activities for Year 2.
  10. (3) Balance of accounts receivable at the end of Year 2.
  11. (4) Net realizable value of accounts receivable at the end of Year 2.image text in transcribedimage text in transcribedimage text in transcribed
Determine the following amounts for the Year 2 accounting period. (Round your answers to nearest whole dollar amount.) \begin{tabular}{|l|l|} \hline Net income \\ \hline Net cash flow from operating activities \\ \hline Balance of accounts receivable \\ \hline Net realizable value of accounts receivable & \\ \hline \end{tabular} Req A2 Req C > Organize the transaction data in accounts under an accounting equation for year 2 . (Enter any decreases to account balances with a minus sign. If there is no effect on the Accounts Titles for Retained Earnings, leave the cell blank. Not all cells will require entry. Round your answers to the nearest whole dollar.)

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