90.2K

Verified Solution

Link Copied!

all one question a,b c

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 $34,150 of cleaning services on account. 2. Collected $27,320 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 $256 account receivable that was determined to be uncollectible. 2. Provided $39.853 of cleaning services on account 3. Collected $35,270 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 for the Year 2 accounting period Required A Required B Required Record the events for Year 1 and Year 2 in T-accounts. (Round your answers to nearest whole dollar.) Cash Retained Earnings Year 1 Beg. Bal End. B+ Bal Year 2 End. Bal. Accounts Recelvablo Service Revenue Year 1 Year 1 Bal. Bal Year 2 Year 2 End, Bal End Bal Allowance for Doubtful Accounts Uncollectible Accounts Expense INALE V 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: (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 (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 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

Answer & Explanation Solved by verified expert

See Answer