Exercise $5-44($Algo$)$ Effect of recognizing uncollectible accounts expense on financial statements:

Percent of revenue allowance method LO $5-1$

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 $1$

Provided $$26,750$ of cleaning services on account.

Collected $$21,400$ cash from accounts receivable.

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 $2$

Wrote off a $$201$ account receivable that was determined to be uncollectible.

Provided $$31,217$ of cleaning services on account.

Collected $$27,627$ cash from accounts receivable.

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

Required

a$.$ Organize the transaction data in accounts under an accounting equation for each year.

b$.$ Determine the following amounts:

Net income for Year $1.$

Net cash flow from operating activities for Year $1.$

Balance of accounts receivable at the end of Year $1.$

Net realizable value of accounts receivable at the end of Year $1.$

c$.$ Determine the following amounts:

Net Income for Year $2.$

Net cash flow from operating activities for Year $2.$

Balance of accounts receivable at the end of Year $2.$

Net realizable value of accounts receivable at the end of Year $2.$

Complete this question by entering your answers in the tabs below.

Req A$1$ Req A$2$ Req B

Organize the transaction data in accounts under an accounting equation for year $1.$

Note: Enter any decreases to account balances with a minus sign. Leave cells blank if no input is needed. Round your answers

to the nearest whole dollar.

$\backslash$table$[[$ROSIE DRY CLEANING$],[$Accounting Equation for Year $1],[$Event$,$Balance Sheet,$\backslash$table$[[$Account Titles for Rotained$],[$Earnings$]]],[$Assets$,,\backslash$table$[[$Equity$],[$Retained$],[$Earnings$]]],[$Cash$,+,\backslash$table$[[$Net Reallzable Value of$],[$Accounts Recelvable$]],=$