Question: Question 2 (15 marks) Part 2A As at 31 December 2020, accounts receivable amounted to $49,000 (being gross amounts of $50,000, net of allowance

Question 2 (15 marks) Part 2A As at 31 December 2020, accounts

Question 2 (15 marks) Part 2A As at 31 December 2020, accounts receivable amounted to $49,000 (being gross amounts of $50,000, net of allowance for doubtful accounts of $1,000). At this date, 90% of the accounts receivable were not yet overdue, and the remaining 10% were overdue within one month. This is estimated that 3% of accounts receivable not overdue are estimated to be uncollectible, and 5% of those overdue within one month are estimated to be uncollectible. No journal entry was posted regarding bad debt expense for the year ended 31 December 2020. Required: (a) Calculate the required allowance for doubtful accounts as at 31 December 2020. (b) Prepare the journal entry (for the bad debt expense) for year 2020. (3 marks) (2 marks)

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