Rosle Dry Cleaning was started on January 1, Year 1. It experlenced the following events during its first two years of operation. Events Affecting Year 1 1. Provided $29,360 of cleaning services on account. 2. Collected $23,488 cash from accounts recelvable. 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 $220 account recelvable that was determined to be uncollectible. 2. Provided $34,263 of cleaning services on account. 3. Collected $30,323 cash from accounts recelvable. 4. Adjusted the accounting records to reflect the estimate that uncollectible accounts expense would be 1 percent of the cleaning revenue on account.

Rosle Dry Cleaning was started on January 1, Year 1. It experlenced the following events during its first two years of operation. Events Affecting Year 1 1. Provided $29,360 of cleaning services on account. 2. Collected $23,488 cash from accounts recelvable. 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 $220 account recelvable that was determined to be uncollectible. 2. Provided $34,263 of cleaning services on account. 3. Collected $30,323 cash from accounts recelvable. 4. Adjusted the accounting records to reflect the estimate that uncollectible accounts expense would be 1 percent of the cleaning revenue on account.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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