Accounting policies and changes in accounting estimates    LO1, 2 Mouse Ltd traditionally estimated its allowance for doubtful debts as a percentage of net credit sales for the year. An analysis of the variance between the allowance amount and the actual bad debts written off for the past 5 years has shown significant unfavourable discrepancies. In the previous year (ended 30 June 2020) the allowance was estimated at $24 000, but bad debts written off during the current year were $11 200 more than allowed for. Consequently, the accountant has decided to change the method of estimation from a percentage of net credit sales to an analysis of the accounts receivable balances. This analysis estimated that the allowance for doubtful debts should be $35 600 as at 30 June 2021 (the current year). Required 1. Show the following for the year ended 30 June 2021:

(a) the ledger account for the allowance for doubtful debts

(b) the end of the reporting period adjusting journal entry. 2. Justify your accounting treatment in requirement 1 by reference to the requirements of AASB 108/IAS 8. 3. Explain how and why the change in method of estimation should be disclosed by Mouse Ltd.