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Rosie Dry Cleaning was started on January 1, Year 1. It experienced the following events...

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Accounting

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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 1 1. Provided $32,560 of cleaning services on account. 2. Collected $26,048 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 $244 account receivable that was determined to be uncollectible. 2. Provided $37,998 of cleaning services on account. 3. Collected $33,628 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

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