Question: i need help with this question, included A and B BE7-7 Massey Ltd uses the allowance method to record bad debts expense and concludes, using

i need help with this question, included A and B BE7-7

i need help with this question, included A and B

BE7-7 Massey Ltd uses the allowance method to record bad debts expense and concludes, using the ageing of accounts receivable method, that 1% of accounts receivable will become uncollectable. Accounts receivable are S500 ooo at the end of the year, and the Allowance for Doubtful Debts has a credit balance of S3000. a. Prepare the adjusting Journal entry to record bad debts expense for the year. b. If the Allowance for Doubtful Debts had a debit balance of $800 instead of a credit balance of $300o, determine the amount to be reported for bad debts expense

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