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Rosle 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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Rosle 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 $29,420 of cleaning services on account. 2. Collected $23,536 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 $221 account recelvable that was determined to be uncollectible. 2. Provided $34,333 of cleaning services on account. 3. Collected $30,385 cash from accounts recelvable. 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. (1) Net income for Year 1 . 2. (2) Net cash flow from operating activities for Year 1 . 3. (3) Balance of accounts recelvable at the end of Year 1 . 4. (4) Net realizable value of accounts receivable at the end of Year 1. c. Determine the following amounts: 1. (1) Net income for Year 2 . 2. (2) Net cash flow from operating activities for Year 2. 3. (3) Balance of accounts recelvable at the end of Year 2 . 4. (4) Net realizable value of accounts receivable at the end of Year 2

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