Rosie Dry Cleaning was started on January 1, Year 1. It experienced the following events during its first two years of opera Events Affecting Year 1 1. Provided $31,320 of cleaning services on account. 2. Collected $25,056 cash from accounts receivable. 3. Adjusted the accounting records to reflect the estimate that.uncollectible accounts expense would be 1 percent of the revenue on account. Events Affecting Year 2 1. Wrote off a $235 account receivable that was determined to be uncollectible. 2. Provided $36,550 of cleaning services on account. 3. Collected $32,347 cash from accounts receivable. 4. Adjusted the accounting records to reflect the estimate that uncollectible accounts expense would be 1 percent of the 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 A1 Req A2 Req B Answer is complete but not entirely correct. Net income Net cash flow from operating activities Balance of accounts receivable Net realizable value of accounts receivable Req C Determine the following amounts for the Year 2 accounting period. Note: Round your answers to nearest whole dollar amount. $36,185 $32,347 $ 6,316 X $ 9,789
Rosie Dry Cleaning was started on January 1, Year 1. It experienced the following events during its first two years of opera Events Affecting Year 1 1. Provided $31,320 of cleaning services on account. 2. Collected $25,056 cash from accounts receivable. 3. Adjusted the accounting records to reflect the estimate that.uncollectible accounts expense would be 1 percent of the revenue on account. Events Affecting Year 2 1. Wrote off a $235 account receivable that was determined to be uncollectible. 2. Provided $36,550 of cleaning services on account. 3. Collected $32,347 cash from accounts receivable. 4. Adjusted the accounting records to reflect the estimate that uncollectible accounts expense would be 1 percent of the 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 A1 Req A2 Req B Answer is complete but not entirely correct. Net income Net cash flow from operating activities Balance of accounts receivable Net realizable value of accounts receivable Req C Determine the following amounts for the Year 2 accounting period. Note: Round your answers to nearest whole dollar amount. $36,185 $32,347 $ 6,316 X $ 9,789
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
Question
Transcribed Image Text: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
1. Provided $31,320 of cleaning services on account.
2. Collected $25,056 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 $235 account receivable that was determined to be uncollectible.
2. Provided $36,550 of cleaning services on account.
3. Collected $32,347 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:
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 A1
Req A2
Req B
Answer is complete but not entirely correct.
Net income
Net cash flow from operating activities
Balance of accounts receivable
Net realizable value of accounts receivable
Req C
Determine the following amounts for the Year 2 accounting period.
Note: Round your answers to nearest whole dollar amount.
$36,185
$32,347
$ 6,316
$ 9,789
< Req B
Req C
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Step 1: Preparation of Accounting equation, Net income, Cash flow, Accts recv. and Net realizable value
VIEWStep 2: a. Accounting Equation
VIEWStep 3: b. Determination of Net Income, Net cash flow and Net realizable value for Year 1.
VIEWStep 4: Determination of Net Income, Net cash flow and Net realizable value for Year 2.
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