During the year ended 31 December 2009, Cilla had made sales on credit of $261,000 and had received cash from customers of $238,000. The opening balances for the Receivables Account is $74,000 and Allowance for Receivable Account is $12,560.

These amounts had been entered into the Receivables Account, and a balance extracted.

On investigation, the following was discovered:

(a) Paul had paid $2,200 of his previously irrecoverable debt (we do not expect to receive any more)

(b) George had still not paid the $8,000 owing, and must now be regarded as irrecoverable

(c) Ann had paid her debt of $2,000 in full and the entries have already been recorded.

(d) Ringo was owing $4,000 which is irrecoverable

(e) Mick was owing $6,000 and is a doubtful debt

(f) It was decided to maintain the general allowance for receivables at 4% of the remaining debts

(Note: the amounts received from Paul and Ann are included in the total cash receipts for the year of $238,000).

Required:

Write up the:

1. Accounts Receivable,
2. Irrecoverable Debts Expense, and Allowance for Receivables accounts