Norma Electronics sell its products for cash and on credit. It usually provides $6\%$ of its credit

sales as allowance for bad and doubtful debts.

In the month of April $20$x$1,$ Norma Electronics recorded $$480,000$ as sales, of which $$325,000$

were cash sales. During the year, Norma Electronics determined that $$8,600$ worth of

invoices will not be recovered and so were written$-$off. During the year, it collected $$3,850,$

which was written$-$off as bad debts in the previous year.

You are required to:

 

a$)$ Provide journal entries based on the information provided by Norma Electronics and

b$)$ Provide the closing balance in Allowance for bad and doubtful account, assuming there

was an opening balance of $$7,150$ in the account.