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KBC Ltd., a logistics company, uses the balance sheet approach to estimate uncollectible accounts expense. At year-end 2021 an aging of the accounts receivable produced the following five groupings.

in $ a. Not yet due 1150000 b. 1-30 days past due 290000 c. 31-60 days past due 110000 d. 61-90 days past due 58000 e. over 90 days past due 39000 Total 1647000

On the basis of past experience, the company estimated the percentages probably uncollectible for the above 5 age groups to be as follows: Group a: 1,5 %, Group b: 4 %, Group c: 12 %, Group d: 18 % and Group e: 50 %. The Allowance for Doubtful Accounts before adjustments at 31. December 2021 showed a credit balance of $ 65300.

a) Compute the estimated amout of uncollectible accounts based on the above classification by age groups. (10 points)

b) Prepare the adjusting entry needed to bring the Allowance for Doubtful Accounts to the proper amount as of 31. December 2021. (4 points)

c) Assume that on 5. January 2022, KBC Ltd. learned that an account receivable that had originated on 1. August 2021 in the amount of $ 2500 was worthless because of the bankruptcy of the client Chaos Inc.. Prepare the journal entry required on 5. January 2022 to write off this account. What is the impact on the Income statement and the Net Realizable Value of the Accounts Receivable please calculate Net Realizable Value before and after the journal entry, assuming that there were no other changes of the balances since 31. December 2021 ? (10 points)

d) Provide 3 brief examples for Internal Control measures over Accounts Receivables. No detailed explanations required.