All transactions below relate to Alpha Ltd’s uncollectable accounts for the financial year ended 30 June 2023. Ignore GST

The Accounts Receivable account, prior to the transactions listed above, had a balance at 30 June 2023 of \($245\) 960. The opening balance of the Allowance for Doubtful Debts on 1 July 2022 amounted to \($12\) 300 credit.

Required:

(a) Prepare journal entries for each of the transactions listed above.

(b) Determine:
i. the balance in the Allowance for Doubtful Debts account after the 30 June adjustment ii. the expected realisable value of the accounts receivable as at 30 June.

(c) Assume that instead of basing the allowance for doubtful debts on net credit sales, the estimate of uncollectable accounts is based on an ageing of accounts receivable and that \($15\) 120 of the accounts receivable as at 30 June was estimated to be uncollectable. Determine:
i. the general journal entry to bring the allowance account to the desired balance ii. the expected realisable value of the accounts receivable as at 30 June.

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July 15 Aug 25 Nov 3 Jan 10 Apr 28 May 10 June 30 Wrote off the $3290 account of Nomis Ltd, and $4575 of Pike Ltd as uncollectable. Re-established the account of Torro Ltd and recorded the collection of $2145 in full payment of their account which was previously written off as a bad debt. Received 60% of the $2059 account for Powell Ltd. The remaining balance was written off as a bad debt. Received formal notification from Zulu Ltd the company was insolvent and wrote off the $745 amount owing as uncollectible. Received $1390 from Brac Ltd in full payment of their account, which had been written off earlier as uncollectable. Received 75% of the $1145 balance owned by Simmonds Ltd and wrote off the remainder as a bad debt. Estimated bad debts expense for the year to be 2% of net credit sales of $820 000.