The following transactions relate to Nivea Production Ltds business transactions and uncollectable accounts for the financial year ended 30 June 2020:

(Note: The business is not registered for GST)

Credit sales during the year is $60000 and cash sales is $5000. During the year, $25000 has already been collected from the receivables.

The Accounts Receivable account had a balance at 1 July 2019 of $16,000 and the beginning (1 July 2019) balance in the Allowance for Doubtful Debts account was $4,500.

You are required to prepare Journal entries for each of the following transaction:

July 21 - Mr. Kingfisher owed the business $2,500 was declared bankrupt and his account have been written off as uncollectible during the year. (1 mark)

Oct 25 - Mr. Corona's account, who owed us $2500, was written off as uncollectible last year. His account is reestablished this year and he has confirmed to pay the business full amount next month. (1 mark)

Nov 21 - Received $2500 from Mr. Corona in full settlement of his account. (1 mark)

June 30 - Estimated bad debts expense for the year to be 4% of net credit sales. (2 marks)