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Joey's Bike Shop sells new and used bicycle parts. Although a majority of its sales are cash sales, it makes a significant amount of credit sales. During 2018, its first year of operations, Joey's Bike Shop experienced the following: Sales on account Cash sales Collections of accounts receivable Uncollectible accounts charged off during the year $299, 200 696,100 284, 240 1,400 Required Assume that Joey's Bike Shop uses the allowance method of accounting for uncollectible accounts and estimates that 1 percent of its sales on account will not be collected. Answer the following questions: a. What is the Accounts Receivable balance at December 31, 2018? b. What is the ending balance of Allowance for Doubtful Accounts at December 31, 2018, after all entries and adjusting entries are posted? c. What is the amount of uncollectible accounts expense for 2018? d. What is the net realizable value of accounts receivable at December 31, 2018? a. Accounts receivable b. Allowance for doubtful accounts c. Uncollectible accounts expense d. Net realizable value Required information [The following information applies to the questions displayed below.) Leach Inc. experienced the following events for the first two years of its operations: 2018: 1. Issued $10,000 of common stock for cash. 2. Provided $80,000 of services on account. 3. Provided $31,000 of services and received cash. 4. Collected $49,000 cash from accounts receivable. 5. Paid $20,000 of salaries expense for the year. 6. Adjusted the accounting records to reflect uncollectible accounts expense for the year. Leach estimates that 6 percent of the ending accounts receivable balance will be uncollectible. 2019: 1. Wrote off an uncollectible account for $670. 2. Provided $100,000 of services on account. 3. Provided $25,000 of services and collected cash. 4. Collected $82,000 cash from accounts receivable. 5. Paid $30,000 of salaries expense for the year. 6. Adjusted the accounts to reflect uncollectible accounts expense for the year. Leach estimates that 6 percent of the ending accounts receivable balance will be uncollectible. a. Organize the transaction data in accounts under an accounting equation. (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.) LEACH INC. Accounting Equation for the Year 2018 Event Assets Accounts Receivable Liabilities Equity Common Retained stock Earnings Accounting Titles for Retained Earnings Cash Allowance + + | + + + + + + + + + + + + + + + Bal. + + + LEACH INC. Income Statement For the Year Ended December 31, 2018 Operating expenses Total operating expenses LEACH INC. Statement of Changes in Stockholders' Equity For the Year Ended December 31, 2018 Beginning common stock Ending common stock Beginning retained earnings Ending retained earnings Total stockholders' equity LEACH INC. Balance Sheet As of December 31, 2018 Assets Total assets Liabilities Stockholders' equity Total stockholders' equity Total liabilities and stockholders' equity LEACH INC. Statement of Cash Flows For the Year Ended December 31, 2018 Cash flows from operating activities Net cash flow from operating activities Cash flows from investing activities Cash flows from financing activities Inflow for issue of common stock Net change in cash Ending cash balance c. What is the net realizable value of the accounts receivable at December 31, 2018? Net realizable value d-1. Organize the transaction data in accounts under an accounting equation. d-2. Prepare an income statement for 2019. d-3. Prepare the statement of changes in stockholders' equity for 2019. d-4. Prepare the balance sheet for 2019. d-5. Prepare the statement of cash flows for 2019. d-6. What is the net realizable value of the accounts receivable at December 31, 2019? LEACH INC. Accounting Equation for the Year 2019 Equity Liabilities Common. Retained - Allowance stock Earnings Event Assets Accounts Receivable Accounting Titles for Retained Earnings Cash Bal. + + + + + + + + + + + + + + + + + + + + + Bal. LEACH INC. Income Statement For the Year Ended December 31, 2019 Operating expenses Total operating expenses LEACH INC. Statement of Changes in Stockholders' Equity For the Year Ended December 31, 2019 Beginning common stock Ending common stock Beginning retained earnings Ending retained earnings Total stockholders' equity LEACH INC Balance Sheet As of December 31, 2019 Assets Total assets Liabilities Stockholders' equity Total stockholders' equity | Total liabilities and stockholders' equitv LEACH INC. Statement of Cash Flows For the Year Ended December 31, 2019 Cash flows from operating activities 0 Net cash flow from operating activities Cash flows from investing activities Cash flows from financing activities Net change in cash Ending cash balance Net realizable value