Question:3 2 i. If the month-end bank statement shows a balance of $72,000, outstanding checks are $54,000, a deposit of $15,000 was in transit at month end, and a check for $3,000 was erroneously charged by the bank against the account, what will be the correct balance in the bank account at month end? a ii. Identify whether each of the following items would be (a) added to the book balance, (b) deducted 4 from the book balance in a bank reconciliation, (c) added to the bank balance, or (d) deducted from the bank balance. 1. Deposits in transit 2. Bank service charge 3. Collection of note and interest by bank on company's behalf 4. NSF check 2 Question: 4 i. Your company is expecting thousands of credit sales transactions each week with terms of net 30 days. The company uses the allowance method and it prepares weekly financial statements. It believes that 0.001 of its credit sales will be uncollectible. The company's credit sales for its first week of operations are $500,000. The credit sales for its second week are $600,000. What will be the balance in Allowance for Doubtful Accounts at the end of the second week of operations? ii. What do we mean by net realizable value of accounts receivable? 2 iii. KLM Company has the net sales for the month are $800,000, and bad debts are expected to be 1.5% 1 of net sales. The KLM uses the percentage-of-sales basis. If the Allowance for Doubtful Accounts has a credit balance of $15,000 before adjustment, what is the balance after adjustment? 1 iv, what are the differences between direct write off method and allowance method? Which method is better suited to expense recognition principle? Why