C Exercise 7 10A Algo Accounting for uncollectible accounts

Last updated: 3/26/2023

C Exercise 7 10A Algo Accounting for uncollectible accounts percent of revenue allowance versus dire write off method LO 7 1 7 4 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 Cash sales Collections of accounts receivable Uncollectible accounts charged off during the year SHARE 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 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 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 260 700 616 200 247 665 1 068 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 17 4 What is the net realizable value of accounts receivable at December 31 Year 17 1 Accounts receivable Show less A