Income statement approach Smarkly Limited uses the income statement approach to account for bad debts and allowance for doubtful debts. The following information is available: 1 Past experience...

Income statement approach Smarkly Limited uses the income statement approach to account for bad debts and allowance for doubtful debts. The following information is available: 1 Past experience suggests that 1 per cent of net credit sales will become uncollectable. 2 Credit sales for the year ended 30 June 2019, $3 200 000. 3 Cash sales for the year ended 30 June 2019, $700 000. 4 Bad debts written off during the year ended 30 June 2019, $17 000. 5 Present balance of allowance for doubtful debts account, $21 000. Prepare the necessary journal entry or entries to account for bad debts for the year ended 30 June 2019. Show all workings.