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 2018, its first year of operations, Joey's Bike Shop experienced the following: Sales on account $271,400 Cash sales 623,900 257,830 1,355 Collectionss of accounts receivable Uncollectible accounts charged off during the year Required 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: a. What is the Accounts Receivable balance at December 31, 2018? b. What is the ending balance of Allowance for Doubtful Accounts at December 31, 2018, after all entries and adjusting entries are posted? c. What is the amount of uncollectible accounts expense for 2018? d. What is the net realizable value of accounts receivable at December 31, 2018? Answer is complete but not entirely correct. $ 12,215 Accounts receivable |ь. а. Allowance for doubtful accounts Uncollectible accounts expense Net realizable value 5,421 $ 2,714 $ 93,315 с. 6е

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 2018, its first year of operations, Joey's Bike Shop experienced the following: Sales on account $271,400 Cash sales 623,900 257,830 1,355 Collectionss of accounts receivable Uncollectible accounts charged off during the year Required 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: a. What is the Accounts Receivable balance at December 31, 2018? b. What is the ending balance of Allowance for Doubtful Accounts at December 31, 2018, after all entries and adjusting entries are posted? c. What is the amount of uncollectible accounts expense for 2018? d. What is the net realizable value of accounts receivable at December 31, 2018? Answer is complete but not entirely correct. $ 12,215 Accounts receivable |ь. а. Allowance for doubtful accounts Uncollectible accounts expense Net realizable value 5,421 $ 2,714 $ 93,315 с. 6е

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter8: Revenue Recognition, Receivables, And Advances From Customers

Section: Chapter Questions

Problem 45P

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