Study the following extract from the Trial Balance of Lees Shoes on 30 June 2021 Account Debit $ Credit $ Bank 8501 Debtors control 7800 Allowance for Doubtful debts 400 Discount 120 Additional information: 1. A stock take reveals stock of $5500 2. A debtor paid his account of $1100. He received 5% discount. This transaction has not been recorded yet. 3. A debtor was declared bankrupt, $500 4. Lee decided that allowance for doubtful debts is to be maintained at 7% of Debtors a) Taking the above into account, show the new balances as it appears in the Income statement and Balance Sheet at the of 30 June 2017 for the following accounts: Bank Debtors Control Account Stock Account Allowance for Doubtful Debts Bad and Doubtful Debts Discount Allowed $ b) The Allowance for Doubtful Debt relates to the concept of Prudence as