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 $42,000. The company's 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: Not due (under 30 days) Amount $ Allowance for doubtful debts % 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 33.00 Over 90 days past due 34,000 68.00 3,394,000 Required: a) Fill in the following statement to calculate the amount of allowance for doubtful debts account for the year ended December 31 2021. Statement to calculate the amount of allowance required on December 31, 2021 Debts outstanding: Amount ($) % Amount of Allowance Required Not due (under 30 days) 2,050,000 1.25 25,625 1 to 30 days past due 971,000 2.00 19 420 19,420 31 to 60 days past due 207,000 6.50 13.455 61 to 90 days past due 132,000 33.00 Over 90 days past due 34,000 68.00 3.560 23,120 TOTAL AMOUNT REQUIRED: 125, 180 (30 marks) b) Prepare the Allowance for doubtful debts account for the year ended December 31, 2021 Allowance for doubtful debts account Date 2021 Particulars Amount (S) Date Particulats Amount (S) 2021 Jan 1 Balance b/d 42,000 (20 marks) (c) Prepare the journal entry to record the amount of allowance required for the year ended December 31, 2021. Date Particulars Journal (20 marks) d) Show the extracts of the Accounts Receivable in the Balance Sheet of Coach Limited as at December 31, 2021. Current Assets Accounts Receivable Less: Allowance for doubtful debts (30 marks) END OF TEST 2