A balance sheet extract of Kahwati Ltd. reported as at 30 June, 2020; Accounts Receivable $981 485 Allowance for Doubtful Debts (18 950) The company recorded the following for the year ending 30 June, 2021: Credit sales income totalling, $1 638 000 Credit sales returns totalling, $21 360 Accounts receivable collections, $1 893 000 Accounts receivable written off- uncollectable $17 695 Based on ageing of accounts receivable analysis undertaken at the end of June, 2021 the company decided that the Allowance for Doubtful Debts account should have a credit balance of $21 250 on the Balance Sheet at June 30, 2021 Required: a) Prepare general journal entries to record the sales & receivables transactions above and to adjust the Allowance for Doubtful Debts account. b) Show how the Allowance for Doubtful Debts account would appear in the ledger and how accounts receivable and the allowance for doubtful debts would appear on the Balance Sheet at 30 June. c) On 29 June, ABC Ltd, whose $3 395 account had been written off as uncollectable in May, paid the account in full. Prepare journal entries to record the collection. d) Explain, in your own words, i. What is the difference between the 'Net Credit Sales method and the 'Ageing of Accounts Receivable method' when accounting for doubtful debts. ii. Which method provides the most accurate result? GENERAL JOURNAL OF KAHWATI LTD. Date Particulars 30/6/2021 Debit Credit Credit b) Allowance for doubtful debts (under the Ageing of Accounts Receivable method) Amount Date Amount $ Particulars Date Particulars Balance Sheet as at 30 June (extract)