At 31 December 2020, the unadjusted balance in allowance for Doubtful Debts is a credit of 33,250.

Required:

1. Prepare the adjusting entry at 31 December 2020 for bad debts expense assuming that the ageing schedule indicates that $54,100 of accounts receivable will be uncollectable.

2. Repeat (1) assuming that instead of a credit balance, there is a $1,200 debit balance in the Allowance for Doubtful Debts before the adjusting entry.

3. A $3,050 account receivable was written off as uncollectable on 31st January 2021. Prepare the journal entry to record the write-off.

4. Repeat (3) assuming that Layland Ltd uses the direct write-off method instead of the allowance method in accounting for bad debts.