SK Limited is a merchandising company based in Australia and adopts the allowance method for doubtful accounts. The statement of financial position (balance sheet) at 31 December 2015 showed a credit balance of $58,000 in Allowance for Uncollectible Accounts. During the year ended 31 December 2016, the following transactions occurred:

Date	Transaction
2016
12 January	Sold goods to Jeff Wong for $32,000 with one-month credit
20 January	Received payment from Alice Lee relating to her 30-day, 9% note for $9,000 that fell due for payment on this date. An accrual had been made for the interest earned up to 31 December 2015.
12 February	Accepted a 60-day, 6% note for $32,000 from an existing debtor, Jeff Wong
5 April	Wrote off an outstanding debt of $5,000 owed by Andrew Ha who was untraceable
12 April	Payment was duly received from Jeff Wong upon the maturity of the note signed on 12 February.
23 May	Received payment of $5,000 from Andrew Ha which had been written off on 5 April
30 July	Sold goods to Joey Lee by accepting a 90-day, 6% note for $13,000
30 October	The note dated 30 July from Joey Lee was dishonoured and returned by the bank.
15 December	Wrote off the amount owed by Joey Lee as it was proved to be irrecoverable
18 December	Sold goods to Mary Ma by accepting a 60-day, 5% note for $30,000
31 December	Recorded the accrued interest on the note from Mary Ma

Required

a) Prepare journal entries to record the transactions during the year ended 31 December 2016. Use a 360-day year when performing interest calculations and round the interest to one decimal place.

b) After reviewing an aged list of accounts receivable at 31 December 2016, the credit manager of the company estimated an amount of $50,000 would become uncollectible. Prepare the allowance for doubtful accounts for the year ended 31 December 2016 (in T-account format).

c) Discuss why the allowance method of accounting for uncollectible accounts is better to match revenue and expense.