In 2020 Norman Pty Ltd had net credit sales of $75 000. On 1 July 2019, the allowance for doubtful debts had a credit balance of $1800. During 2020, $3000 of uncollectable accounts receivable were written off. Ageing of accounts receivable revealed that the allowance should be 8% of the balance 7.10 478 Financial accounting: Reporting, analysis and decision making in receivables. If the accounts receivable balance at 30 June 2020 was $20000, what is the required adjustment to the allowance for doubtful debts at 30 June 2020? (a) $1600. (b) $7500. (c) $2800 (d) $3000 LO8 7.11 An analysis and ageing of the accounts receivable of Machiavelli Ltd at 31 December reveal these LO9 data: Accounts receivable Allowance for doubtful debts per business $800000 records before adjustment (credit) Amounts expected to become uncollectable 50000 65 000 What is the recoverable amount of the accounts receivable at 31 December after adjustment? (a) $685000. (b) $750000. (c) $800000. (d) $735 000