The accountant for Debbie’s Dance Ltd prepared an ageing analysis of accounts receivable balances at 30 June 2019 as set out below. The percentages of each age group are based on past experience and are shown next to the aged balances. Ignore GST.

The allowance method is used to account for bad debts. On 30 June 2019 the credit balance of the Allowance for Doubtful Debts account is $3150 before any adjustments.

Required

(a) Prepare the general journal adjusting entry to record estimated bad debts on 30 June 2019.

(b) Give the entry to write off the account of S. Riley in August 2019, $1650.

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Age Estimated uncollectable (%) Balance $346 500 99 000 24 750 29 700 Current 0.5 30-60 days overdue 2.0 61-120 days overdue 10.0 121 days to 6 months overdue. Over 6 months overdue 20.0 40.0 19 800 $519 750