pey's Bike Shop sells new and used bicycle parts. Although a majority of its sales are cash sales, it makes a significant amount of edit sales. During Year 1, 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 $288,300 696,700 273,885 1,413 equired 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 1? (2) What is the ending balance of the Allowance for Doubtful Accounts at December 31, Year 1, after all entries and adjusting entrie 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?

pey's Bike Shop sells new and used bicycle parts. Although a majority of its sales are cash sales, it makes a significant amount of edit sales. During Year 1, 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 $288,300 696,700 273,885 1,413 equired 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 1? (2) What is the ending balance of the Allowance for Doubtful Accounts at December 31, Year 1, after all entries and adjusting entrie 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?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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