The following transactions relate to the gardening maintenance business of Steve Jones. The balance in the allowance for doubtful debts account on 1 July 2014 was $8,450. The bad debts during the year ended 30 June 2015 amounted to $5,930. Debtors' balances on 30 June 2015 after the bad debts had been written off total $185,180, and a new allowance of 5% of debtors is required. (Ignore GST for the purposes of this exercise.)

A) Prepare and balance the allowance for doubtful debts account for the year to 30 June 2015. using T accounts

B) Show how the above information would be disclosed in:

1.		the income statement for the year ended 30 June 2015
2.		the balance sheet as at 30 June 2015.