The following data is extracted from the financial records of AU Tiles. The data is in relation to the financial year ending 31 December 2019 and 31 December 2020.

	31 December 2019	31 December 2020
	$	$
Cash at bank	11,000	13,000
Inventories	654,000	756,000
Accounts receivable	480,000	520,000
Bills receivable	8,500	9,800
Bad debts written off during the year	6,200	0
Sales revenue for the year	1,820,000	2,600,000
Discount allowed	3,200	2,800

The business uses theIncome Statement method to estimate its' doubtful debts each year. It has been estimated that 1% of the sales revenue of the year will be the bad debts expense for the year. At the beginning of year 2019, the Allowance for Doubtful Debts account has a credit balance of $12,000.

Required:

1. Determine the amounts of the following accounts. Show your workings for each item.
   1. Bad debts expenses for the year ending 31 December 2019
   2. Allowance for doubtful debts at the end of year 2019
   3. Bad expenses for the year ending 31 December 2020
   4. Allowance for doubtful debts at the end of year 2020
2. Calculate thereceivable turnover ratio for year 2020 and comment on the ratio.
3. Discuss the differences between ageing method and percentage of net credit sales method.
4. Using the information provided in the question and your calculation from requirement A, prepare theCurrent Assets section of the balance sheet as at 31 December 2020.