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Cash sales 266,665 1,182 Joey's Bike Shop sells new and used bicycle parts. Although a majority of its sales are cash sales, it makes a

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Cash sales 266,665 1,182 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 Year 1, its first year of operations, Joey's Bike Shop experienced the following. Sales on account $289,700 602,500 Collections of accounts receivable Uncollectible accounts charged off during the year Required a. 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: (1) What is the Accounts Receivable balance at December 31, Year 17 (2) What is the ending balance of the Allowance for Doubtful Accounts at December 31, Year 1, after all entries and adjusting entries are posted? (3) What is the amount of uncollectible accounts expense for Year 1? (4) What is the net realizable value of accounts receivable at December 31, Year 1? b. Assume that Joey's Bike Shop uses the direct write-off method of accounting for uncollectible accounts. Answer the following questions: (1) What is the Accounts Receivable balance at December 31, Year 1? (2) What is the amount of uncollectible accounts expense for Year 1? (3) What is the net realizable value of accounts receivable at December 31, Year 1? Complete this question by entering your answers in the tabs below. Required A Required B Assume that Joey's Bike Shop uses the allowance method of accounting for uncollectible accounts and es percent of its sales on account will not be collected. Answer the following questions: (1) What is the Accounts Receivable balance at December 31, Year 1? (2) What is the ending balance of the Allowance for Doubtful Accounts at December 31, Year 1, after all entries are posted? (3) What is the amount of uncollectible accounts expense for Year 1? (4) What is the net realizable value of accounts receivable at December 31, Year 1? (1) Accounts receivable (2) Allowance for doubtful accounts (3) Uncollectible accounts expense (4) Net realizable value Ivable at December 31, Year 1? Complete this question by entering your answers in the tabs below. Required A Required B Assume that Joey's Bike Shop uses the direct write-off method of accounting for uncollectible accoun questions: (1) What is the Accounts Receivable balance at December 31, Year 1? (2) What is the amount of uncollectible accounts expense for Year 1? (3) What is the net realizable value of accounts receivable at December 31, Year 1? (1) Accounts receivable (2) Uncollectible accounts expense (3) Net realizable value

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