Kelly’s Kites began operations on January 1, 2020, ends its fiscal year on December 31, and prepares annual financial statements in accordance with U.S. GAAP. Kelly purchases kites from a supplier and resells them at his retail stores. Kelly also offers lessons on flying kites at a few of his retail locations. Presented below is information relating to conditions that exist at December 31, 2022. For each item, consider all necessary entries and then indicate the appropriate reporting as indicated for the 2022 fiscal year end financial statements in accordance with U.S. GAAP. Kelly will be preparing his balance sheet as of December 31, 2022, and his income statement and statement of cash flows for the year ended December 31, 2022. You do not need to show any entries.

Kelly offers credit terms to some of his customers who purchase large quantities of kites (these customers regularly purchase kites to resell on beaches and in parks). The company reported “Accounts Receivable, net realizable value” of $1,350 on his December 31, 2021 balance sheet and a balance in the “Allowance for Doubtful Accounts” of $150 in the footnotes to his financial statements. During 2022, he sold 500 kites at $20/each on credit terms; had cash collections related to credit sales of $8,500; and wrote off accounts of $200. The accountant estimated that 9% of the ending accounts receivable balance at December 31, 2022 would not be collected. What amounts will be reported in the 2022 year-end financial statements for the following accounts?

i) Accounts Receivable, gross (or total owed): $

ii) Allowance for Doubtful Accounts: $

iii) Accounts Receivable, net realizable value: $

iv) Bad Debts Expense: $