The Great Escape Limited reported an accounts receivable ledger balance of $179 000 and an allowance for doubtful debts of $8 700 at 1 June. The following transactions and adjustments to account balances were recorded during the year:

1. Cash sales were $235 000 and credit sales were $820 000 for the year.

2. Bad debts expense was recorded as 4% of credit sales.

3. Payment of $762 000 on accounts receivable were received.

4. A total of $29 600 of accounts receivable was written off as uncollectable during the year.

5. Management reviewed the accounts receivable balances at the end of the year and decided the balance in the allowance for doubtful debts should be $14 200.

Required:

a) Prepare the journal entries recorded by The Great Escape Limited for each of the above entries.

b) Prepare the ledger accounts for accounts receivable and allowance for doubtful debts (in T- account form) and show the Balance Sheet extract relating to net accounts receivable at 30 June.