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Part A Wong Ltd provides a 12 months warranty on watches purchased from the entity. On 1 July 2020, there was a credit balance of $10,000 in the Warranty Provision account. During the year ended 30 June 2020, Wong incurred $8,200 servicing warranty claims for televisions sold. $6,000 of the warranty claims used spare parts held in inventory and the balance was for employee labour that is outstanding at 30 June. During the year ended 30 June 2018, Wong Ltd recorded revenue from the sales of Watches totalling $500,000. The Provision for Warranty is estimated at 3% of watch sales for the previous 12 months. Required: a) Prepare the necessary journal entries to record the warranty claims during the period and end of period adjustments to the Warranty Provision account at 30 June. (4 marks) b) Wong Ltd believes using a provision for warranty is complicated and would prefer to simply record the warranty expense a when customer makes a warranty claim. Briefly explain to Wong Ltd why it is more appropriate to use a provision for warranty account to record potential warranty claims. (4 marks) Part B At the 30 June 2021, Gan Advertising had a credit balance of $430 in the Allowance for Doubtful Debts account. An aged analysis was performed on the 30 June and identified the following: Aged Schedule of accounts receivable at 30th June 2021 Accounts Estimated % Receivable Uncollectable Not yet due $60,000 1% 1 - 30 days 100,000 1.5% 31 - 60 days 45,000 2% Over 60 days 8,200 15% Required: i) From the aged analysis above, calculated the estimated bad debts at 30 June 2021. (ignore GST). (2 marks) ii) Record the general journal entry to provide for doubtful debts (ignore GST). (2 marks) iii) Briefly explain the process of accounting for "bad debts recovered