Text - Problem 12.11 Doubtful debts - net credit sales and ageing methods GST version Great Outdoors Ltd sells outdoor furniture settings on credit. The accounting records at 30 June 2019 reveal the following. Note: 10% GST Inclusive Credit sales (for year) $1 177 000 Credit sales returns and allowances (for year) 99 000 Accounts receivable (balance 30 June 2019) 359 150 Allowance for doubtful debts (credit balance 30 June 2019) 1 500 In the past, the company's yearly bad debts expense had been estimated at 2% of net credit sales revenue. It was decided to compare the current method with an ageing of the accounts receivable method. The following analysis was obtained with respect to the accounts receivable: % estimated Balance uncollectable Accounts not yet due $193 160 Accounts overdue: 10-30 days 67 100 2 31-60 days 48 400 10 61-120 days 27 940 25 121 days and over 22 550 $359 150 40 - Required: (a) Prepare the journal entries to adjust the Allowance for Doubtful Debts at 30 June 2019 under: i. the net credit sales method ii. the ageing of accounts receivable method. (6) Determine the balance in the Allowance for Doubtful Debts account under both methods. (c) Assume that the allowance account had a debit balance of $850 at 30 June 2018. Show the journal entries to record the allowance for doubtful debts at 30 June 2019 under: i. the net credit sales method ii. the ageing of accounts receivable method. (d) Using the journal entries from requirement C, determine the balance in the allowance account under both methods