Part 1 At the 30 June 2020, Jasper Marketing had a credit balance of $800 in the Allowance for Doubtful Debts account. An aged analysis was performed on the 30 June and identified the following: Aged Schedule of accounts receivable at 30th June 2020 Required: Accounts Receivable Estimated % Uncollectable Not yet due $70,000 2% 1 - 30 days 90,000 3% 31 - 60 days 50,000 5% Over 60 days 10,000 10% a) From the aged analysis above, calculated the estimated bad debts at 30 June 2020. b) Record the general journal entry to provide for doubtful debts (ignore GST). c) Briefly explain the process of accounting for "bad debts recovered". Part 2 Derek Ltd. launched a new product on 1 January 2020. In first quarter of the year, their sales amounted to $3 million. Historically, similar products resulted in lifetime warranty expense of 2% on sales. Actual warranty claims amounted to $40,000 during the quarter. In the second quarter of the year, 1st March through to 30th June, total sales amounted to $4 million and actual warranty claims totalled $50,000. Required: a) Prepare the journal entries to record the initial warranty liability and payment of warranty claims for both quarters. Calculate the closing balance of the warranty payable at the end of the second quarter. b) With reference to the Conceptual Framework, explain what is a provision and when a provision should be recognised as a liability in the statement of financial position.