Question 2 (25 marks) Part 1 (11 marks) The accountant for Tasman Gifts Pty Ltd prepared an ageing analysis of accounts receivable balances at 30 June 2019 as set out below. The percentages of each age group estimated to be uncollectable are based on past experience and are shown next to the aged balances. The company is registered for GST. The company uses the 'allowance method' to account for bad debts. On 30 June 2019 the credit balance of the Allowance for Doubtful Debts account is $3150 before any adjustments. Age Current 30-60 days overdue 61-120 days overdue 121 days to 6 months overdue Over 6 months overdue Estimated uncollectable (%) 0.5 2.0 10 20 40 Balance 346 500 99 000 24 750 29 700 19 800 519 750 (Use whole numbers for all journals) (Use whole numbers for all journals) Required: A. Prepare the general journal adjusting entry for estimated bad debts on 30 June 2019. (4 marks) B. B. Give the entry to write off the account of P. Arthur in August 2019, $1650. (3 marks) C. The following transactions relate to the florest business of Penny Hall. The balance in the Allowance for Doubtful Debts account on 1 July 2018 was $7440. Bad debts written off during the year ended 30 June 2019 amounted to $5220. Debtors' balances on 30 June 2019 after the bad debts had been written off total $162 960, and a new allowance of 5% of debtors is required. (Ignore GST for the purposes of this exercise.) D. (4 marks) E. F. G. Required: H. I. Prepare and balance the Allowance for Doubtful Debts accounts for the year to 30 June 2019