On 1 January 20XX, Woodlands Ltd has $250,000 of accounts receivable. Woodlands Ltd uses the allowance method of accounting for bad debts and has an existing credit balance in the allowance for doubtful debt of $15,000. During the year, the following transactions took place: i) $1,000,000 of goods were sold to customers on credit. ii) Received $920,000 cash from accounts receivable. iii) Wrote off $2,000 from a debtor who went bankrupt. iv) The management estimated that 10% of accounts receivable will be uncollectible. Required: a) Update the accounts receivable balance. (4 marks) b) Update the allowance for doubtful debt account.