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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 $28,100 of cleaning services on account. 2 Collected $22.480 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 $211 account recelvable that was determined to be uncollectible 2. Provided $32,793 of cieaning services on account. 3. Collected $29,022 cash from accounts receivable. 4. Adjusted the accounting records to reflect the estimate that uncolbectible accounts expense would be 1 percent of the cleaning revenue on account. ROSIE DRY CLEANING Accounting Equation for the Year 1 Balance Sheet ReqA2 > \begin{tabular}{|l|rl|} \hline Net income & $ & 32,465 \\ \hline Net cash flow from operating activities & $ & 29,022 \\ \hline Balance of accounts receivable & \\ \hline Net realizable value of accounts recelvable & \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|c|c|} \hline \multicolumn{7}{|c|}{ ROSIE DRY CLEANING } \\ \hline \multicolumn{7}{|c|}{ Accounting Equation for the Year 2} \\ \hline \multirow{3}{*}{ Event } & \multicolumn{5}{|c|}{ Balance Sheet } & \multirow{3}{*}{\begin{tabular}{c} Accounts Titles for Retained \\ Earnings \end{tabular}} \\ \hline & \multicolumn{3}{|c|}{ Assets } & \multirow{2}{*}{\multicolumn{2}{|c|}{\begin{tabular}{l} Equity \\ Retained \\ Earnings \end{tabular}}} & \\ \hline & Cash & + & \begin{tabular}{c} NRV Accounts \\ Receivable \end{tabular} & & & \\ \hline Bal. & 22,480 & + & & = & 27.819 & \\ \hline 1. & & + & & = & & Uncollectible accounts expense \\ \hline 2. & & + & 32,793 & = & 32.793 & Service revenue \\ \hline 3. & 29,022 & + & & = & Dis & Service revenue \\ \hline 4. & & + & & = & 328 & Uncollectible accounts expense \\ \hline Bal. & 51,502 & + & 32,793 & = & 60.940 & \\ \hline \end{tabular}

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