exercise T-IUA Accounting Tor uncollectibie accounts: percell U Joey's Bike Shop sells new and used bicycle parts. Although a majority of its sales are cash sales, it makes tpx a sgnlicant amount of credi sales. During 2016,is first year of operations, Joey's Bike Shop experienced the following Sales on account Cash sales Collections of accounts receivable Uncollectble accounts charged off during the year $260,000 580,000 235,000 1,250 Required e Asume that Joay's Bike Shop uses the alowance method of accounting for uncolectible accounts and collected. Answer the following questions: estimates that 1 percent of its sales on account will not be (1) What is the Accounts Receivable balance at December 31, 2016 2) What is the ending balance of the Allowance for Doubtful Accounts at December 31, 2016, after all entries and adjusting entries are posted? (3) What is the amount of uncollectible accounts expense for 2016? 4) What is the net realizable value of accounts receivable at December 31, 2016? Answer is complete and correct. (1) Accounts receivable (2) Allowance for doubtful accounts 3) Uncollecible accounts expense 23.750 1,350 26000 $ 22.400 (4) Net realzable value b. Assume that Joey's Blike Shop uses the direct write-off method of accounting for uncollectible accounts Answer the folowing questions (1) What is the Accounts Receivable balance at December 31, 2016? 2) What is the amount of uncollectible accounts expense for 2016? O) What is the net realizable value of accounts receivable at December 31, 2016? 0 Answer is complete but not entirely correct. receivable 2 Uncolecible accounts expense (3) Netr 25,000 2,600 5 21,150 3 O 1 lo