PG a trader sells electrical components. She has provided the following information for the year ended 31 July 2022. Sales journal for the year ended 31 July 2022 $ Sales returns journal for the year ended 31 July 2022 360000 Trade receivables at 1 August 2021 13300 Provision for doubtful debts at 1 August 2021 28500 1140 Cash book extract of totals for the year ended 31 July 2022 Discount Cash Bank Bank Allowed $ $ $ Trade receivables 6500 335 100 Trade receivables (dishonoured cheques) 4000 Sales 17000 Additional information 1 $900 of trade receivables were written off as irrecoverable debts on 31 July 2022. There were no other irrecoverable debts during the year. 2 The provision for doubtful debts is to be set at 4% of trade receivables at 31 July 2022.

1. (a)Prepare the following ledger accounts for the year ended 31 July 2022. Where appropriate show the balance brought down on 1 August 2022. PG Sales account Sales returns account Trade receivables account Irrecoverable debts account Provision for doubtful debts account[13]
2. (b)Prepare a relevant extract from PG's statement of financial position at 31 July 2022. PG Extract from statement of financial position at 31 July 2022[2]
3. (c)List three ways in which PG could reduce the possibility of irrecoverable debts.[3]
4. (d)State two factors PG should consider when setting the provision for doubtful debts.[2]