QUESTION 1 Thompson keeps an Allowance for Doubtful Debts Accounts with the balance representing 22% of his debtors at the end of each year. He writes off bad debts as they happen to a Bad Debts Account In the year commencing 1 April 2020, his Allowance for Doubtful Debts stood at 157 and the following transactions took place: 2020 April 1: Lionel owed 350. He paid 100 to Thompson on 10 June 2020 but was unable to pay the balance. April 1: Fiona owed 92. She informed Thompson on 1 May 2020 that she was bankrupt and could pay nothing. April 1: Ngo owed 135. He paid 25 on 15 August 2020 to Thompson. He was insolvent and could not pay the remainder of the debt. Thompson recorded the cash payments in the debtors accounts and immediately cleared the balance to his Bad Debts Account. Also, on 20 December 2020, he received 50 for a Bad Debt previously written off in 2019. At the end of his financial year, 31 March 2021, the total of his debtors was 9,800 and he needed to adjust his allowance for doubtful debts account accordingly. REQUIRED: (a) For the year ended 31 March 2021, prepare the (i) Bad debts account (ii) Allowance for doubtful debts account (iii) Bad debts recovered account