Al Marina Engineering is in the business of construction. Due to recession the construction industry in going downward. Al Marina is presently having some tenders applied in the past and the company plans to complete these project to meet the recession period. The major item of concern in the business was the cash cycle and this is directly dependent on the collection from the Accounts receivables. Mr Mahmood the Chief Accountant appoints you on 1st May 2019 to manage his business Accounts receivable and to regularly follow up with the accounts receivables for collection of cash as and when due. You have collected the required details from the accounts person relating to receivables. The Accounting record shows projects completed in April was of RO 377250 and the closing balance of Accounts receivable was RO 220,160.

During the month of May you have collected the details of the Accounts receivables. Your finding about the accounts receivable reveals that in one of Account receivable whose project was completed eight months back, have not paid the outstanding bill for RO 2000 The customer has already sold the property and is nowhere traceable. The Management have decided to treat the same as Bad debt and remove the name from receivables. During the current month business completed some project for RO 335,000 and the amount collected from receivables were RO 328,167.

During the Month of June one of your receivable on whom RO 10000 was due on 8th June could not pay the amount on the due date. However he accepted a 30 days note at 8% interest. This was not recorded in the accounts. In June the business completed contract for RO 347000 and the collection from Accounts receivable were RO 348,333. The Direct write off method for recording uncollectable was not suitable for this type of business and so, you have decided to change from direct writ off method to the allowance method for recording uncollectable for doubtful debts. You have decided to make an allowance @ 4% on closing Accounts receivable. In the month of July on the due date the note receivable was dishonoured. In the same month the customer whose name was removed as Bad Debt, paid the amount due.

You are required to record the required Journal entries for the above transactions.

**note: Working notes form part of the answer