Part B An extract of account balances from the ledger of Faye Ltd. for the year ended June 30 2020 is given below: Cr ($) Accounts Accounts receivable Allowance for doubtful debts (unadjusted balance) Dr ($) 438,000 15,000 The aging analysis of accounts receivable on June 30, 2020 is as follows: Period Outstanding 181 days Amount 200,000 135,000 50,000 35,000 18,000 Percentage considered doubtful 2% 4% 8% 15% 50% 438.000 After examining the balances of accounts receivable, it was decided to write off a further debt from Nowork & Co of $9,000, which was dated October 15, 2018. The owner Mr. Nowork cannot be traced for payment. Faye Ltd received a cheque of $6,000 from a customer, Lucky Enterprise in June 2020. Lucky Enterprise was not listed in the ageing analysis of accounts receivable as the debt owed was written off in 2017. This cheque is not yet recorded by the accountant as at June 30, 2020. Required: (i) Construct the 'Allowance for Doubtful Debts' account for Faye Ltd as at June 30, 2020. (8 marks) (ii) Prepare journal entries to record the bad debt recovered and receipt of cheque of $6,000. (4 marks) (iii) A more detailed analysis of accounts receivable ageing listing shows that one debts owed more than 181 days of $9,000 is in fact aged more than 1 year from a customer, Stubborn Ltd. The credit controller has been sending reminders and statement of accounts to Stubborn Ltd but payment is not forthcoming after repeated following-up. Provide one recommendation to the management of Faye Ltd to recover debt owed by Stubborn Ltd. (2 marks) (Total = 6 + [8 + 4 + 2) = 20 marks)