Question 4 At 12/31/2017 the records of the Kyle Corporation report the followin

Question

Question 4 At 12/31/2017 the records of the Kyle Corporation report the following Accounts receivable balance before write-offs: $2,940,000 Net Sales: Accounts to be written off Allowance for doubtful account balance before write offs: $72,500 Estimated bad debt rate based on AR balance: 3% Estimated bad debt rate based on net sales: 1.2% $9,850,000 $ 81,000 Required Part A be entryt 1) Prepare 2) What is the journal entry to record the write off of uncollectible accounts the required balance in the allowance account using the balance sheet approach? the journal entry to record bad debt expense using the balance sheet approach. the final NRV using the balance sheet approach? Part B the journal to record bad debt expense using the income statement approach. 5) Pre 6) pare What is the required balance in the allowance account using the income statement approach? What is the final NRV using the income statement approach? 7) Relevant table factors Interest Periods Factor 20 0.37689 5% | 201 12.46221 20 2.6533 5% PV1

Explanation / Answer

Part A

1) Journal entry to record the write off

2. Required balance in allowance account using balance sheet approach is:

3. Journal entry to record adjustment is:

working:

4. Final NRV is:

Account Receivable 2,859,000

Less: allowance for doubtful accounts 85,770

Net Realizable value 2,773,230

Date Particulars L.F Amount ($) Amount ($) Allowance for doubtful accounts 81,000 Account Receivable 81,000 (For accounts written off)

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