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McGlee Ltd has a balance in the allowance for doubtful debts account of $5,200 Credit. Before the adjustment at the year ended 30 June 2021,
McGlee Ltd has a balance in the allowance for doubtful debts account of $5,200 Credit. Before the adjustment at the year ended 30 June 2021, no bad debts are expected to be recovered. Ignore GST. Aged Schedule of accounts receivable at 30 June 2021 Accounts Estimated % Receivable Uncollectable Not yet due $100,000 2.0 96 1 - 30 days overdue 200.000 4.0 % 31- 90 days overdue 90,000 6.0.96 Over 90 day overdue 18.000 10.0 96 Required: A Using the aging of accounts receivable method calculate estimated bad debts from the above information. (3 marks) B. Prepare a general journal entry to adjust allowance for doubtful debts. (2 marks) c. On 6 August 2021 Alpha Ltd, whose $9.000 account had been written off as uncollectable in July paid its account in full Prepare inutnal entries to record the collection 2
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