a) During the year to 30 June 20X7, Eugene Ltd sold a non-current asset for $36,000. It had been acquired three years ago at a cost of $180,000. At the date of disposal of the asset, the accumulated depreciation was $138,000.

What was the profit or loss on disposal, and what journal entries are needed to record the disposal?

b) Compare and contrast the allowance and direct write off method for uncollectible receivables.