Pete’s Auto Service was started on January 1, 2010. The company experienced the following events during its first year of operation.

Events affecting 2010

1. Provided $50,000 of repair services on account.

2. Collected $35,000 cash from accounts receivable.

3. Adjusted the accounting records to reflect the estimate that uncollectible accounts expense would be 1 percent of the service revenue on account.

Events affecting 2011

1. Wrote off a $350 account receivable that was determined to be uncollectible.

2. Provided $65,000 of repair services on account.

3. Collected $66,000 cash from accounts receivable.

4. Adjusted the accounting records to reflect the estimate that uncollectible accounts expense would be 1 percent of the service revenue on account.

Required

a. Organize the transaction data in accounts under an accounting equation.

b. Determine the following amounts:

(1) Net income for 2010.

(2) Net cash flow from operating activities for 2010.

(3) Balance of accounts receivable at the end of 2010.

(4) Net realizable value of accounts receivable at the end of 2010.

c. Repeat Requirement b for the 2011 accounting period.