On 30 June 2023 R Williams decides to increase the allowance for doubtful debts from $1200 (created in 2022)

to 5% of the accounts receivable control account balance of $49 995. Bad debts expense of $3553 had already been written off during the year.

Using the combined method you are required to prepare:

• adjustments and closing journal entries

• general ledger accounts that show the data given and the posting of the journals on the required dates

• an extract of the income statement, and

• an extract of the balance sheet.