Classic Clocks Pty Ltd uses the allowance method to account for doubtful debts. The business allows for bad and doubtful debts at 3% of net credit sales.

At the 1 June 2020 the accounts receivable ledger balance of $56,000 debit and a credit balance in the allowance for doubtful debts ledger account of $5,000.

Credit sales for the month of June were $24,000 (GST Exclusive) and sales returns for the month were $5,000 (GST Exclusive) and these have been recorded in the journal

The business received notification from City Hall Pty Ltd on 8 June 2020 that, $3,630 (GST Inclusive) that had previously been written off as uncollectible in May 2020 would be paid in full in 2 weeks. The money was received on 22 June.

On 28 June Classic Clocks Pty Ltd was contacted by Vogue Homeware Pty Ltd to notify that the business had been declared bankrupt and that they would not be able to pay the $1,100 owing to Classic Clocks from a previous credit sale made to them in April 2020.

Required:

Prepare journal entries for each of the above events. Narrations are not required.