At 31 December 2019, an extract of trial balance of Success Pty Ltd contained the following amounts before adjustment:

	Dr	Cr
Accounts Receivable	400,000
Allowance for Doubtful Debts		10,500
Sales		950,000
Sales returns and allowance	50,000

Required:

a) Prepare the adjusting entry as at 31 December 2019 to record the bad debts expense assuming that uncollectable accounts is estimated at 3% of accounts receivable.

b) On 15 February 2020, a $1,250 customer balance is written off as uncollectable. Prepare the journal entry to record the write-off.

c) Repeat b) assuming that Success Pty Ltd uses direct-write off method instead of allowance method in accounting for bad debts.

d) On 31 March 2020, the customer in b) assured Success Pty Ltd that he will pay his debt by the end of the year. Prepare journal entry to this event.