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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 $$290,700$

Cash sales $628,900$

Collections of accounts receivable $276,165$

Uncollectible accounts written off during the year $1,320$

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:

What is the accounts receivable balance at December $31,$ Year $1?$

What is the ending balance of allowance for doubtful accounts at December $31,$ Year $1,$ after all entries and adjusting entries are posted?

What is the amount of uncollectible accounts expense for Year $1?$

What is the net realizable value of accounts receivable at December $31,$ Year $1?$

Balance Sheet Income Statement Statement of Cash Flows

Assets $=$ Liabilities $+$ Stockholders' Equity Revenue $$ Expense $=$ Net Income

A$.582(582)$ NA NA NA NA NA $582$ OA

B$.582$ NA NA $582$ NA $582582$ OA

C$.582(582)$ NA NA NA NA NA NA

D$.582582$ NA NA NA NA $582$ OAThe Yankee Corporation has recently begun to accept credit cards. On July $7,$ Yankee made a credit card sale of $$600.$ Assume that the credit card fee is recorded on the date of sale and that the credit card company charges a fee of $3\%.$

Which of the following correctly shows the effects of the sale on July $7?$

Balance Sheet Income Statement Statement of Cash Flows

Assets $=$ Liabilities $+$ Stockholders' Equity Revenue $$ Expense $=$ Net Income

A$.60018582582$ NA $582$ NA

B$.582$ NA $58260018582582$ OA

C$.582$ NA $58260018582$ NA

D$.600$ NA $600600$ NA $600$ NA

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