Joey/s B We Shop sels new ond used bicycle parts. Arthough a majorty of ats sales ore cosh rales, it makes a significant amount of credit sales During year ti its first year of operavons, Joeys B Bke shop experienced the following Required: a. Absumie that Joey's Bbe Shop uses the allowance method of accounting for uncosectible accounts ond estimdes that 1 percent of its sales on account wa not be collected. Ancwer the following questions (1) What is the Accounts Recefvable balance at December 31, Yeart? (2) Whot is the ending bolance of the Allowance for Doubtful Accounts ot Decembet 3t, Year 1 , after ail traniactions and ad wistments are posted? (3) What is the amount of uncolectible occounts expthse for Year 1? (4) What is the net realzsble value of accouns recervable ot Decembet 31, Year t. b. Assume that Jooys Bine shop uses the drect write oft method of accounting for uncollectible accounts Answer the following questions: (1) What is the Accounts Receivable bolance at December 31, Year 1 ? (2) What is the amount of uncollectible accounts expense for Year 1? (3) What is the net realirable value of accounts tecewable at December 31, Yeat 1 ? Complete this question by entering your answers in the tabs below. Assume that Joer's bike shop uses the allonance method of accountieg for uncolectible accounts and eatmates thut 1 Assume that Joer's bike Shop uses the atonance method of accourbeg for uncotect of (1) What is the Accounts Receivable balance at December 31, Year t? (2) What is the Accounti Recenvabe balance at December 31, reat if balance of the Alowance for Doubdful Accounts at Decenber 31, Year 1, atter all tannactoons and aspustments are posted? (3) What is the amsunt of uncollectible accounts expense for year 17 . (3) What is the amsount of unce realcable value of accourts receivable at oncember 31, vear 17 . Joey's Bike Shop sells new and used bicycle parts. Although a majority of its soles are cash sales. It makes a signuficant amount of credit sales. During Year 1 , its first year of operations, Joey's Bike Shop expertenced the following: Required: 0. Assume that Joey's Bike Shop uses the allowance method of accounting for uncollecrible accounts and estimates that 1 percent os its sales on account will not be collected. Answer the following questions (1) What is the Accounts Recelvable balance at December 31, Year 1 ? (2) What is the ending balance of the Allowance for Doubtful Accounts at December 31, Yeat 1, after all transactions and adjustments are posted? (3) What is the amount of uncollectible accounts expense for Year 1? (4) What is the net realizoble value of accounts recelvable at December 31 , Year 1 ? b. Assume that Joey's Blke Shop uses the direct witte-off method of accounting for uncolfectidle accounts. Answer the following questions. (1) What is the Accounts Recelvable 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 recelvable at December 31 , Year 1 ? Complete this question by entering your answers in the tabs below. b. Assume that Joey's Bike Shop uses the direct write-off method of accounting for uncollectible accounts. Anewer 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
