Rosle Dry Cleaning was started on January 1, Year 1. It experienced the following events...
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Rosle 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 1. Provided $25,140 of cleaning services on account 2. Collected $20,112 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 $189 account receivable that was determined to be uncollectible. 2. Provided $29,338 of cleaning services on account. 3. Collected $25,964 cash from accounts recevable. 4. Adjusted the accounting records to reflect the estimate that uncollectible accounts expense would be 1 percent of the cleaning revenue on account Required a. Record the events for Year 1 and Year 2 (Including closing entries for Year 1) in T-accounts, 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. Repeat Requirement b for the Year 2 accounting period. Complete this question by entering your answers in the tabs below
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