Bailey Limited appointed Mr Chris as the credit manager to manage its account receivables efficiently. The following balances appear in the books of Bailey Limited.

Account receivables on 1^st July 2020 $15 142.86

Credit sales during the year $123 571.43

Cash collected during the year $119 257.14

Allowances for doubtful debts on 1^st July 2020 $885.71

As a credit manager, Mr Chris decided to write off $342.86 as bad debts and increase allowances for doubtful debt to $1200.

Required:

Calculate bad debt expenses [3 Marks] and the estimated collectable values of account receivables [2 Marks]. Further, prepare necessary ledger accounts [6 Marks]