Question 4 Accounts Receivable (12 marks): Lockdown Limited reported the following information on its balance sheet: Accounts Receivable. 1 October 2020 Allowance for Doubtful Accounts, 1 October 2020 Allowance for Doubtful Accounts, 30 September 2021 $1,000,000 (50.000 (70.000) During the year ended 30 September 2021, the business journalised the following transactions: Sales on account (terms 5/10 net 30) $2.000.000 Sales returns and allowances 40.000 Sales discounts 30,000 Discounts lost 20,000 Cash received from customers 2.100.000 Write-offs of accounts receivable deemed uncollectible 60,000 Cash received from recovered write-offs 20.000 REQUIRED: (a) Prepare the T-account for Allowance for Doubtful Accounts, noting the following: Ignore GST for this problem. (5 marks) (6) Prepare the required adjusting journal entry on 30 September 2021. (2 marks) With reference to the transactions journalised by the business, were all the transactions relating to sales and accounts receivable? If no, comment on: which transaction(s) does do not relate to sales and accounts receivable; what the identified transaction(s) does do relate to; and where in the SOCI the identified transaction(s) would be disclosed. If yes, comment on: what would cause a sales discount; what would cause a sales return and allowance; and what would cause a discounts lost. Your answer for each comment should not exceed one sentence. Each sentence should be a maximum of 10 words. (2 marks) Calculate the average collection period for accounts receivable (i.c., days in accounts receivable) for the year ended 30 September 2021. Comment on your result. (3 marks) (d) Question 4(a) - 5 marks: Prepare the T-account for Allowance for Doubtful Accounts, noting the following: Ignore GST for this problem. The table below illustrates what should go in each column of the "T" account. You do not need to worry about the "underline" for the total. Not all the boxes need to be completed. Debit side Allowance for Doubtful Accounts Debit $ Credit Side Credit $ Allowance for Doubtful Accounts M Question 4(b) - 2 marks: Prepare the required adjusting journal entry on 30 September 2021. Enter the text and numbers in the boxes. A separate box is provided for your workings. Account Debited Account Credited Debit Credit Complete your workings here Question 4(d) - 3 marks: Calculate the average collection period for accounts receivable (i.e., days in accounts receivable) for the year ended 30 September 2021. Comment on your result Fill in your calculation here Fill in your answer here Accounts receivable turnover Fill in your calculation here Fill in your answer here Days in Accounts Receivable Comment Fill in your comments on the days in accounts receivable for 2021 here