Pots-R-Us deals in ceramic pots and figurines. All sales are conducted on a credit basis and no cash discounts are given. Ignore GST. Ignore all journal narrations.

The following information was extracted from the accounting records at 30 June 2019:

Sales $552,000

Sales returns and allowances 37,900

Cash collected 319,120

Debts to be written off 4,022

Required

2) Pots-R-Us uses the allowance method of accounting for bad debts and the Allowance for Doubtful Debts account had a credit balance of $2,645 at 1 July 2018. One percent of net credit sales is estimated to be uncollectable for the year ended 30 June 2019.

1. Prepare the adjusting entry in the space provided below to record the estimated uncollectible amount.

Date	Account	Debit	Credit

2. Prepare the Allowance for Doubtful Debts account

3. Show how Accounts Receivable and Allowance for Doubtful Debts would be reported in the balance sheet at 30 June 2019.