Events Affecting Year 1

1. Provided $31,890 of cleaning services on account.
2. Collected $25,512 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 $239 account receivable that was determined to be uncollectible.
2. Provided $37,216 of cleaning services on account.
3. Collected $32,936 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:

1. Organize the transaction data in accounts under an accounting equation for each year.
2. Determine the following amounts:
3. Net income for Year 1.
4. Net cash flow from operating activities for Year 1.
5. Balance of accounts receivable at the end of Year 1.
6. Net realizable value of accounts receivable at the end of Year 1.

c. Determine the following amounts:

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.