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 $$26,800$ of cleaning services on account.

Collected $$21,440$ 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 $$31,276$ of cleaning services on account.

Collected $$27,679$ 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 $2.$

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Determine the following amounts for the Year $2$ accounting period.

Note: Round your answers to nearest whole dollar amount.