In 2016, a major sponsor refused to pay his promised sponsorship of the club because he was not happy with their playing performance.The Magpies Football Club wrote-off the $10,000 owing as a bad debt using the allowance method.

Prior to the write off of bad debts above, the Magpies Football Club had accounts receivable of $90,000 and an allowance for doubtful debts of $8,000Cr. After examining the balance of accounts receivable, it was decided to increase the allowance for doubtful debts to 2% of adjusted accounts receivable

Prepare the general journal entries to record the above