QUESTION 1 12 marks Kookaburra Ltd provides selected accounting records as at 31 December 2020 as shown below. The company is registered for Goods and Services Tax (GST) and the amounts given below includes GST. Sales for the year 157,800 Sales returns and allowances 35,700 Allowance for doubtful debts (credit) 2,550 + . As per the company's policy, only 75% of sales are conducted on a credit basis and no cash discounts are given On 15 July 2020, it was identified receivables totalling $1,100 were deemed uncollectible and should be written off as bad. In the past, Kookaburra Ltd estimated its doubtful debts expense at 2.5% of net credit sales. The company's management reviewed the business' credit policy and have decided to adopt the ageing of accounts receivable method and have represented the following analysis: Age Balance ($) Estimated Uncollectable (%) Current 295.000 1 30-60 days overdue 85,000 3 61-90 days overdue 32,500 10 91-120 days overdue 25,400 20 121-Over 12.100 30 TOTAL 450,000 Required: a) Prepare the journal entry to write off the uncollectable debt on 15 July 2020. 3 marks b) On 1 December 2020, $583 (GST Inclusive) of the doubtful debts previously written off was recovered. 3 marks c) Prepare the journal entries to record the adjustment to the Allowance for doubtful debts at 31 December 2020 under the ageing of accounts receivable method. 3 marks d) Identify the amounts and accounts that would be disclosed in the financial statements if the management had not changed the method and was still using the percentage of net credit sales method at 31 December 2020. 3 marks