(2) A business started trading on 1 January 2017. During the two years ended 31 December 2017 and 2018, the following debts were written off to the Bad Debts Account on the dates stated: 31 May 2017 J. Smith 31 October 2017 L. Brown 31 March 2017 F. Davis 30 September 2017 H. Percy 30 November 2017 G. White $5,000 $4,500 $2,300 $3,500 $1,600 On 31 December 2017 the total accounts receivable was $253,000. It was decided to make an allowance for doubtful debts of $7,590. On 31 December 2018 the total accounts receivable was $272,500. It was decided to make an allowance for doubtful debts of $8,175. REQUIRED: a) The Bad Debts Account and the Allowance for Doubtful Debts Account for each of the two years(make accounting entries) b) The relevant extracts from the Statement of Financial Position as at 31 December 2017 and 2018.

(2) A business started trading on 1 January 2017. During the two years ended 31 December 2017 and 2018, the following debts were written off to the Bad Debts Account on the dates stated: On 31 December 2017 the total accounts receivable was $253,000. It was decided to make an allowance for doubtful debts of $7,590. On 31 December 2018 the total accounts receivable was $272,500. It was decided to make an allowance for doubtful debts of $8,175. REQUIRED: a) The Bad Debts Account and the Allowance for Doubtful Debts Account for each of the two years(make accounting entries) b) The relevant extracts from the Statement of Financial Position as at 31 December 2017 and 2018