On 1 January, the balance in the Accounts Receivable Account for James Pty Ltd was \(\$ 4125\). During the next six months, credit sales amounted to \(\$ 13075\) and clients paid \(\$ 14560\) to settle their accounts after allowances for goods returned by clients of \(\$ 240\). At 30 June, James Pty Ltd has decided to write off accounts receivable of \(\$ 450\) as a bad debt.

Required:

a Calculate the ending balance of Accounts Receivable at 30 June.

b What steps might the business take to reduce the possibility of incurring bad debts in future?