ABC Ltd has accounts receivable of $99 600 at 30 April, 2019. An analysis of the accounts shows these amounts as follows:

Month of sale		Balance of Accounts Receivable
April, 2019		$50 000
March, 2019		43 000
February, 2019		1 200
January, 2019		5 100
December and November, 2018		300
		99 600

Credit terms are 2/7, n/30. At 30 April, 2019, there is a $2000 credit balance in Allowance for Doubtful Debts before adjustment. The entity uses the ageing of accounts receivable basis for estimating uncollectable accounts. Estimates of bad debts are as follows:

Age of accounts			Estimated percentage uncollectable
Current			2%
1-30 days past due			5%
31-90 days past due			40%
over 90 days			50%

Required:

a) Determine the total estimated uncollectable (1 mark)

b) Prepare the adjusting entry at 30 April, 2019 to record bad debts expense (1 mark)

c) In May, 2019, a cheque for $1500 is received from the customer whose account was written off as uncollectable in February. Prepare the journal entry. (2 marks)

(Both account names and figures should be correct in order to award marks.

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