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APOLLO Question 2 Susan started business on 1 July 2012 and used the ageing method to make allowance for doubtful debts. On 30 June 2013, she found it necessary to create an allowance for doubtful debts of $15 000. During the year to 30 June 2014, debts totalling $3 800 proved to be bad and were written off. The total of accounts receivable' balance at 30 June 2014 was 245 500 (after the bad debts had been written off) and under the ageing method, it was decided to increase the allowance for doubtful debts to 5% of this figure. During the year to 30 June 2015, the amount of $2 730 was recovered in respect of bad debts previously written off in 2014. Ignore GST. a) Prepare general journal entries to record all the above transactions. b) Prepare and calculate the balance of the T-account Bad debts expense and the Allowance for Doubtful Debts for 2013 and 2014. c) Assume that net credit sales of 2014 is 1 500 000. What would the adjusting entry for Allowance for Doubtful Debts at 30 June 2014 be if Susan used percentage of uncollectable. net credit sales method? Provided that 2% of net credit sales may become