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Camping World Ltd sells tents and camping equipment on credit. The accounting records at 30...

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Accounting

Camping World Ltd sells tents and camping equipment on credit. The accounting records at 30 June 2022 reveal the following. Ignore GST.
Credit sales (for the year)
$1391000
Credit sales returns and allowances (for the year)
117000
Accounts Receivable (at 30 June 2022)
424450
Allowance for Doubtful Debts (credit balance at 30 June 2021)
1950
In the past, the companys yearly bad debts expense had been estimated at 3% of net credit sales revenue.
Required:
(a) Prepare the journal entries to adjust the Allowance for Doubtful Debts at 30 June 2022 under the net credit sales method
(b) Determine the balance in the Allowance for Doubtful Debts account.
(c) Assume that the allowance account had a debit balance of $1066 at 30 June 2021. Show the journal entries to record the allowance for doubtful debts at 30 June 2022 under the net credit sales method.
(d) Using the journal entries from requirement (c), determine the balance in the allowance account.

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