In a new business during the year ended 31 December 2019 the following debts are found to be bad and are written-off on the dates shown below:

31 Jan S. Seal & Son $800

31 July H. Halt Ltd $500

31 Oct A.Alice $300

On 31 December 2019 the schedule of remaining accounts receivable totaling $20,000 is examined and it is decided to make an allowance for doubtful debts of $700.

Required:

1. Bad Debts Account for the year ended 31 December 2019.

(8 marks)

2. Allowance for Doubtful Debts Account for the year ended 31 December 2019.

(4 marks)

3. Extract from the Statement of Profit or Loss for the year ended 31 December 2019.

(4 marks)

4. Extract from the Statement of Financial Position as at 31 December 2019.

(4 marks)