Joey's Bike Shop sells new and used bicycle parts. Although a majority of its sales are cash sales, it makes a signimicant amount of credit sales. During Year 1, Its fnrst 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 $272,600 631,700 258,970 1,269 Required: o. 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 Recetvable 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 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 recetvable at December 31, Year 1? (1) Accounts receivable (2) Allowance for doubtful accounts (3) Uncollectible accounts expense (4) Net realizable vakue b. Assume that Joey's Bike Shop uses the direct wrtte-off method of accounting for uncollectible accounts. Answer the following questions: (1) What is the Accounts Recervable 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? 8 (t) What is the Accounts Receivable balance at December 31, Year 1? (2) What is the ending balance of the Allowance for Doulbtful Accounts at December 31, Year t after all entries and adjusting entries are posted? (3) What is the amount of uncollectble accounts expense for Year 12 (4) What is the net realizable value of accounts receivable at December 31, Year 1? 125 (1) Accounts recetvable (2) Alowance for doubttul accounts (a) Uncollecible accourls expense 5 12.361 1,457 (4) Net realtuzable valu 5 10.904 Pyine eferences b Asume that lory's Bike Shop uses the direct witeoff methd couning for uncllecitble accounts. Answer the folowing (0 What is the Accounts Receivable balance at December 31, Year 1? questions (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 )Accounts recenable (2) Uncollectibile accounes expense (3) Net realzable value S 2,726 5 10.504