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7 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 $45,000 of cleaning services on account 2. Collected $39,000 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. 3 points BOOK ASK References Events Affecting Year 2 1. Wrote off a $300 account receivable that was determined to be uncollectible. 2. Provided $62,000 of cleaning services on account. 3. Collected $61.000 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 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 Requirements b for the Year 2 accounting period. Required A Required B Required C 7 Record the events for Year 1 and Year 2 in T-accounts. Cash Retained Earnings Beg Bal ants Year 1 2 39,000 44,550 39,000 End. Bal. 44,550 Bal Year 2 Book 61,000 ad End. Bal 100,000 Accounts Receivable Service Revenue oferences Year 1 Year 1 1. 45,000 39.000 2 1 45,000 45,000 Ball 6,000 Year 2 Bal Year 2 12 2 62,000 62.000 62.000 2 300 1. 61.000 3. End. Bal. 6.700 End. Bal Allowance for Doubtful Accounts Uncollectible Accounts Expense Year 1 Year 1 450 450 450 450 Bal Bal. Year 2 1 Year 2 300 620 620 620 End. Bal. 770 End. Bal (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 Requirements b for the Year 2 accounting period. Complete this question by entering your answers in the tabs below. Required A Required B Required 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. 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 (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 Requirements b for the Year 2 accounting period. Complete this question by entering your answers in the tabs below. Required A Required B Required Repeat Requirements b for the Year 2 accounting period. (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

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