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Question - While accounting for account receivable for easy DVD Ltd, the following information because available to the accountant. At 1 July 2014 the allowance for doubtful debts account balance was $8100. To 30 June 2015 debts amounting to $16560 were written off as bad and at 30 June 2015 the required allowance for doubtful debts was calculate under the ageing method to be $9450. To 30 June 2016 debts amounting to $12690 were written off and at 30 June 2016 the allowance for doubtful debts was calculate under the ageing method to be $10845. Ignore GST. It required to prepare and balance the allowance for doubtful debt account and the bad debts expense account for years ending 30 June 2015 and 30 June 2016. Prepare the necessary general journal entries to bring the allowance for doubtful debts to the appropriate amount at 30 June 2015 and 30 June 2016.
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