E9-4 Using the ageing method to estimate bad debts [15-30 min] (LO 20,50) At 30 June 2021, the Accounts receivable balance for Spin Limited is $300 000. The Allowance for doubtful debts has an $8 900 credit balance. Spin Limited prepares the following ageing schedule for its accounts receivable: Age of accounts Accounts receivable 1-30 days 31-60 days 61-90 days Over 90 days $300 000 $140 000 $80 000 $70 000 $10 000 Estimated percentage bad 0.5% 2.0% 6.0% 50% Requirements 1. Journalise the year-end adjusting entry for bad debts on the basis of the ageing schedule. Show the allowance T-account at 30 June 2021. 2. Show how Spin Limited will report Accounts receivable on its 30 June 2021 balance sheet