QUESTION 19 William's Watches sold goods to Colin's Clocks for $1,760 including GST. Colin's Clocks paid their account within the discount period and received a settlement discount of 2%. The correct entry to be recorded in William's Watches' books for receipt of the amount from Colin's Clocks is: a. DR Cash at bank $1,724.80; DR Discount allowed $32.00; DR GST Payable $3.20; CR Accounts receivable $1,760.00 b. DR Cash at bank $1,724.80; DR Discount allowed $35.20; CR Accounts receivable $1,760.00 C. DR Cash at bank $1,728.00; DR Discount allowed $32.00; CR Accounts receivable $1,760.00 d. DR Cash at bank $1,724.80; DR Discount allowed $35.20; DR GST Payable $3.20; CR Accounts receivable $1,763.20 QUESTION 20 William's Watches uses the allowance method to record bad debts expense. After writing off bad debts of $1,800 during the month, the allowance for doubtful debts was $4,570 credit. What is the correct journal entry to record an adjustment to bring the allowance for doubtful debts to 2% of accounts receivable of $310,000 as at the end of the month? a. DR Bad debt expense $1,630; CR Allowance for doubtful debts $1,630. b. DR Allowance for doubtful debts $1,630; CR Accounts receivable $1,630. C. DR Allowance for doubtful debts $1,630; CR Bad debts expense $1,630. d. DR Bad debt expense $1,630; CR Accounts receivable $1,630.