Snowflakes Company has total trade receivables outstanding at 31 December 2019 of $970 000. The company expects that 5% of these balances may not be collected and wishes to make an appropriate allowance.

As at January 1, 2019 the company had allowance for doubtful accounts balance of $28 000.

On 31 December 2020, trade receivables are $760 000. The company believes an allowance of 6% needs to be made against trade receivables.

Required:

What accounting entries should Snowflakes Company make on 31 December 2019 and 31 December 2020, and what figures for trade receivables, net, will be shown in her statements of financial position as at those dates? (6 points)