Exercise $5-4$A $($Algo$)$ Effect of recognizing uncollectible accounts expense on financial statements: Exercise $5-4$A $($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 $$30,250$ of cleaning services on account.

Collected $$24,200$ 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 $$227$ account receivable that was determined to be uncollectible.

Provided $$35,302$ of cleaning services on account.

Collected $$31,242$ 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:

$(1)$ 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$.$ 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 $2.$

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

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 $$30,250$ of cleaning services on account.

Collected $$24,200$ 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 $$227$ account receivable that was determined to be uncollectible.

Provided $$35,302$ of cleaning services on account.

Collected $$31,242$ 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:

$(1)$ 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$.$ 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 $2.$

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

Req A$1$

Req A$2$

Organize the transaction data in accounts under an accounting equation for year $2.($Enter any decreases to account balances

with a minus sign. If there is no effect on the Accounts Titles for Retained Earnings, leave the cell blank. Not all cells will

require entry. Round your answers to the nearest whole dollar.$)$