The following transactions relate to the business of Fruit and Vegie Market Supplies Ltd. Ignore GST.

June 30	Based on past experience, it was estimated that 2% of the years net credit sales revenue of $264 000 will not be collected, and an allowance for doubtful debts was established.
Nov 3	After a concerted effort to collect, an account receivable amounting to $2,500 from Cons Fruit Supplies was written off as a bad debt.
Dec. 10	Cons Fruit Supplies unexpectedly paid the full amount outstanding from the debt previously written off on the 3rd November.

Required:

1. Record the transactions in general journal form.
2. What is the balance in the Allowance for Doubtful Debts accounts and the Bad Debts Recovered account? Where are these accounts shown on the financial statements?