Question 4 15 Points Part A The balance in the allowance for doubtful debts amounted to a credit balance of $13,350.Really Smart Devices prepared the following ageing schedule for its accounts receivable: Accounts Receivable $300,000 Estimated percentage bad Age of Accounts 1-30 31-60 61-90 Over 90 days 210,000 0.50% days 120,000 days 105,000 days 15,000 4% 8% 45% The Notebook Company, a major client for Really Smart Devices, owed $30,000 to the business at 30th June 2020. During the financial year, TheNotebook Company fell on hard times and paid only $9,000 of their balance owing. After repeated attempts to collect, Really Smart finally wrote off the balance of Notebook's receivable account on 31st December 2020. On 1st May 2021, Notebook contacted Really Smart apologising for the delay and paid the total amount owing. Required: 1. Prepare the entry to adjust the allowance for doubtful debts based on the aged analysis at 30th June 2021. (2 marks) 2. Prepare the journal entry on 31st December 2020, to write off the amounting owing by The Notebook Company as a bad debt. (1 mark) 3. Prepare the journal entry to record the receipt of payment from The Notebook Company on 1st May 2021. (2 marks) 4. Briefly explain the difference between a 'bad debt' and a 'doubtful debt'. (2 marks)