Total sales for the year $$132,000$

Cash sales $$89,500$

Provide $5\%$ as allowance for bad and doubtful debts on credit sales.

During the year $$620$ that was written$-$off in the previous year was recovered

During the year, $$1,150$ was written off as bad debts

Generate all necessary entries. Post them in the account of Allowance for bad & Doubtful

Debts and find the closing balance.