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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 $29,570 of cleaning services on account. 2. Collected $23,656 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 $222 account receivable that was determined to be uncollectible. 2. Provided $34,508 of cleaning services on account. 3. Collected $30,540 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. 1. Wrote off a $222 account receivable that was determined to be uncollectible. 2. Provided $34,508 of cleaning services on account. 3. Collected $30,540 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. 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. Complete this question by entering your answers in the tabs below. Organize the transaction data in accounts under an accounting equation for Year 1. (Enter any decreases to account balances with a minus sign. Not all cells require input.) Drganize the transaction data in accounts under an accounting equation for Year 2. (Enter any decreases to account balances with a minus sign. Not all cells require input.) Determine the following amounts for the Year 1 accounting period. (Round your answers to nearest whole dollar amount.) \begin{tabular}{|l|l|l|} \hline Req A1 & Req A2 & Req B \\ \hline \end{tabular} Determine the following amounts for the Year 2 accounting period. (Round your answers to nearest whole dollar amount.) \begin{tabular}{|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}
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