The following data is extracted from the financial records of AU Tiles. The data is in relation to the financial year ending 30 June 2020 and 30 June 2021.

	30 June 2020	30 June 2021
	$	$
Cash at bank	17,050	20,150
Inventories	1,013,700	1,171,800
Accounts receivable	740,000	755,000
Bills receivable	13,175	15,190
Bad debts written off during the year	9,610	-
Sales revenue for the year	2,821,000	4,030,000
Discount allowed	4,960	4,340

The business uses the Income 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 the financial year of 2020 (1 July 2019), the Allowance for Doubtful Debts account has a credit balance of $19,000.

Required:

1. Determine the amounts of the following accounts. Show your workings for each item. (2 marks)

1. Bad debts expenses for the year ending 30 June 2020

2. Allowance for doubtful debts at the end of year 30 June 2020

3. Bad expenses for the year ending 30 June 2021

4. Allowance for doubtful debts at the end of year 30 June 2021

2. Calculate the receivable turnover ratio for year 2021 and comment on the ratio. (2 marks)

3. Discuss the differences between ageing method and percentage of net credit sales method. (2 marks)

4. Using the information provided in the question and your calculation from requirement A, prepare the Current Assets section of the balance sheet as at 30 June 2021.