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 $33,300 of cleaning services on account. 2. Collected $26,640 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 $250 account receivable that was determined to be uncollectible. 2. Provided $38,861 of cleaning services on account. 3. Collected $34,392 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 (including closing entries for Year 1) 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 receivable at the end of Year 1. c. Repeat Requirement b for the Year 2 accounting period. Complete this question by entering your answers in the tabs below. Required A Required B Required Record the events for Year 1 and Year 2 (including closing entries for Year 1) in T-accounts. (Round your answers to nearest whole dollar.) Retained Earnings Year 1 Beg. Bal. Cash Bal End. Bal. Year 2 End. Bal. Accounts Receivable Service Revenue Year 1 Year 1 1. 32,890 26,640 2. 6,250 Bal. Bal. Year 2 Year 2 2. 38,861 250 1. 34,392 3. End. Bal. 10,469 End. Bal. Allowance for Doubtful Accounts Uncollectible Accounts Expense Year 1 Year 1 3. Bal. Bal. Year 2 Year 2 End. Bal. End. Bal. Complete this question by entering your answers in the tabs below. Required A Required B Required 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. Show less (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 Complete this question by entering your answers in the tabs below. Required A Required B Required Repeat Requirement b for the Year 2 accounting period. (Round your intermediate calculations to nearest whole dollar.) (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
