The Assets section of the Balance Sheet of Pineapple Ltd at the 30th June 20*4 is presented below: Current Assets Cash at Bank 36,780 Inventory 112,467 Accounts Receivable 54,674 Less Allowance for Doubtful Debts (5,463) 49,211 198,458 Non-Current Assets Plant & Equipment 750,000 Less Accumulated Depreciation (125,000) 625,000 Intangibles 100,000 725,000 TOTAL ASSETS 923,458QUESTION 2 (CONTINUED) a) During the year ending 30th June 20X5, Pineapple Ltd identified the following debts as uncollectible on the dates mentioned: Date Debtor Bad debts S 21/9/X4 R. Fowler 1,656 13/3/X5 A. Scott 2,890 Required 3 marks Prepare journal entry/ies to write off these bad debts on the dates mentioned. Date DR CR 0 0 0 + 0 0 0 O +QUESTION 2 (CONTINUED) b) On 30 June 20X5 Pineapple Lid reassessed its Allowance for Doubtful Debts account to allow for debts that may become uncollectable in the future using the aged receivables method. You are provided with the following aged debtors listing as at the 30th June 20X5. Debtor Current 0-30 days 31-60 days 61-90 days 91+ days S S S S S G. Norman 1,456 1,872 654 M. Lee 5,622 2,909 1,980 J. Day 5,322 + S. Garcia 2,878 1,435 1,992 2,000 J. Nicklaus 1,909 2,318 6,345 A. Sorenstrom 2,320 6,574 1,921 G. Player 4,300 1,878 1,211 A. Palmer 3,760 2,109 2,388 + Pineapple Ltd have determined that the following rates of uncollectability are to be applied in determining their Allowance for Doubtful Debts. Current To 30 days 31-60 days 61-90 days 90+ days 1.5% 2.0% 5.0% 15.0% 50.0% Required 8 marks Prepare the general journal entry to record the Allowance for Doubtful Debts for Pineapple Ltd as at 30" June 20X5 using the aged receivables method and the above information. Note - you need to take account of the debts written off in part a) above when calculating the journal entry.QUESTION 2 (CONTINUED) c) On the 31 t October 20X5 Pineapple Ltd decided to write off all the amounts that were owing by G. Player as at 30th June 20X5 as a bad debt. Required 2 marks Prepare the journal entry for the write off all the amounts owing by G. Player as a bad debt as at 31s October 20X5. Date DR CR + +d) There are no further debt write offs for the year ended 30" June 20X6 for Pineapple Ltd. At the 30" June 20X6 Pineapple Ltd calculated the balance of the Allowance for Doubtful Debts account using the aged receivables method. This amount was $7,010. Required 2 marks Prepare the journal entry to record the adjustment to the Allowance for Doubtful Debts account required at the 30 June 20X6. Date DR CR I + +QUESTION 2 (CONTINUED) e) During the financial year ending 30" June 20X7 there were no bad debt write offs. As a result Pineapple Lid reviewed all their percentages which are applied in the aged receivables method. Consequently the balance of the Allowance for Doubtful Debts at the 30 June 20X7 was calculated to be $4,655. Required 3 marks Prepare the journal entry to record the adjustment to the Allowance for Doubtful Debts account required at the 30 June 20X7. Date DR CR I + +