Karen Broderick commenced business on 1 July 2014. On 30 June 2015, she found that she had written off debts amounting to $1875. In addition, she found it necessary to create an allowance for doubtful debts of $3030. During the year to 30 June 2016, debts totalling $2400 proved to be bad and were written off, and $330 was recovered in respect of bad debts previously written off. The total of debtors’ balances at 30 June 2016 was $84 300 (after the bad debts had been written off) and it was decided to increase the allowance for doubtful debts to 5% of this figure. Ignore GST.

Required

A. Prepare general journal entries to record all of the transactions.

B. Prepare the Bad Debts Expense account and the Allowance for Doubtful Debts account for 2015 and 2016.