Question 3 - Accounting for Receivables (13 marks) AGL Ltd. has the following unadjusted account balances at 30 June 2022: Accounts Receivable of $236,000, Allowance for Doubtful Accounts of $3,000 (credit balance), and Sales Revenue of $1,200,000 (70% were on credit). Part 1 Assume AGL uses the aging of accounts receivable to estimate its bad debts. The following aging schedule reflects its accounts receivable at the end of June 2022: Account Age Current (not yet due) 1-30 days past due 31-60 days past due 61-90 days past due Over 90 days past due Total Balance $108,000 80,000 35,000 9,000 4,000 $236,000 Estimated Uncollectible Percentage 1.0% 5.0% 13% 45.0% 70.0% Required: a. Calculate the amount of the Allowance for Doubtful Accounts as of June 30, 2022. b. Prepare the adjusting journal entry to record bad debts expense for June 30, 2022. (6 marks) Part 2 Assume this company uses the percent of sales method to estimate its bad debts. Bad debts expense is estimated to be 2% of credit sales. Required: a. Calculate the Bad Debt Expense at 30 June 2022. b. Prepare the adjusting journal entry to record bad debt expense for year ended 30 June 2022. (4 marks) Required: Prepare the necessary journal entries a. to write off the bad debt on 1 December 2021; and b. to record the unexpected collection on 2 June 2022. Part 3 On 1 December 2021, the company wrote off $830 of the account of Lina Tsui as uncollectible. However, on 2 June 2022 she unexpectedly paid her account in full