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 1st 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 1st 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].