On 1 January 2014, Tigger's Honeypot Limited has a debit balance of $22,000 in Accounts Receivable and a credit balance of $ 2,500 in the Allowance for Doubtful Debts. During 2014, Tigger's Honeypot sold goods for cash for $20,000, and on credit $60,000. On 7 July 2014, one of Tigger's Honeypot's customers, Mr. Poor, went bankrupt. Mr. Poor owes Tigger's Honeypot $500 and there is no hope for recovering this amount. On 14 October, Tigger's Honeypot collected $57,500 from outstanding accounts. Tigger's Honeypot's financial year ends on 31 December. Required: Part a 1. If bad debts for 2014 are estimated to be 2% of credit sales, prepare the adjusting entry on the 31 December 2014 to record bad debts expense. (2 marks) 2. Calculate the net accounts receivable after the adjusting entry. (2 marks) Part b If uncollectible accounts are estimated to be $3,000 from aging receivables, prepare the adjusting entry on the 31 December 2014 to record bad debts expense. (2 marks) Part c Briefly explain what is meant by an a