Auburn Scooters sells used motorised scooters on credit. The accounting records at 30 June 2019 reveal the following: (Ignore GST) Credit sales (for the year) Credit sales returns and allowances (for the year) Accounts receivable (balance 30 June 2019) Allowance for doubtful debts (credit balance 30 June 2019) $535,000 $45,000 $181,250 $750 In the past, the company's yearly bad debts expense had been estimated at 2% of net credit sales revenue. It was decided to compare the current method with an ageing of the accounts receivable method. The following analysis was obtained with respect to the accounts receivable: Balance % estimated uncollectable Accounts not yet due Accounts overdue: 1030 days 31-60 days 61-120 days 121 days and over $87,800 $30,500 $22,000 $12,700 $10,250 $163,250 0.5 2 10 25 40 Required: 1. Prepare the journal entries to adjust the Allowance for Doubtful Debts at 30 June 2019 under: a. the net credit sales method. (narrations are required) (2 marks) b. the ageing of accounts receivable method. (narrations are required) (2 marks) 2. Determine the ending balance in the Allowance for Doubtful Debts account (T-account) under: a. the net credit sales method (2 marks) b. the ageing of accounts receivable method (2 marks) 3. On 29 August, Chris Cheng, whose $4,500 account had been written off as uncollectable in June, paid its account in full. Prepare general journal entries to record the collection (narrations are required) (4 marks)