Coach Limited uses the allowance method to account for the uncollectible accounts receivable. The accounting policy is to relate the provision for doubtful debts to the age of debts outstanding. The opening balance of the allowance for doubtful debts account in the Balance Sheet as at January 2021 included a credit balance of $22,000. The companys accounts for the year ended December 2021 are now being prepared.

The debts outstanding at December 31 2021 and the required allowance for doubtful debts are as follows: Debts outstanding: Amount Allowance for doubtful debts

$ % Not due (under 30 days). 2,050,000 1.25 1 to 30 days past due. 971,000 2.00 31 to 60 days past due 207,000 6.50 61 to 90 days past due 132,000 25.00 Over 90 days past due 34,000 50.00

Total 3,394,000

Required:

Prepare a statement to calculate the amount of allowance for doubtful debts account for the year ended December 31 2021.

(30 marks) b) Prepare the Allowance for doubtful debts account for the year ended December 31, 2021.

(20 marks) c) Prepare the journal entry to record the amount of allowance required for the year ended December 31, 2021. marks)

(20 marks) d) Show the extracts of the Accounts Receivable in the Balance Sheet of Coach Limited as at December 31, 2021.

(30 marks)