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h ABC Led has accounts receivable of $50,000 at 30 June, 2020. An analysis of the accounts shows these amounts as follows: Month of sale

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ABC Led has accounts receivable of $50,000 at 30 June, 2020. An analysis of the accounts shows these amounts as follows: Month of sale Balance of Accounts Receivable June, 2020 $25,000 May, 2020 15,000 April - March, 2020 10.000 $50,000 Credit terms are 2/7, n/30. At 30 June, 2020, there is a $1,500 credit balance in Allowance for Doubtful Debts before adjustment. The entity uses the ageing of accounts receivable basis for estimating uncollectable accounts. Estimates of bad debts are as follows: Age of accounts Estimated percent uncollectable Current 10%% 1-30 days past due 15% date 31-90 days 309 Required: a) Determine the total estimated uncollectable. b) Prepare the adjusting entry at 30 June, 2020 to record bad debts expense. c) In September 2020, a cheque for $700 is received from the customer whose account was written off as uncollectable in July. Prepare the journal entry. Narrations are not required for the journal entries. 7 A BIJ Ff O a) You can type your answer for part (a) directly into the template below. Alternatively, you can type your answer in the space below the template

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