Red Hen PTY. LTD. purchased $9,200 worth of steam cleaning services from Chooka's Steam Cleaning Services. The owner of Chooka's Steam Cleaning Services purchased 20 kilograms of Chicken salt from Red Hen PTY. LTD. for $800. In Chooka's Steam Cleaning Services books both the debtor and creditor entries appear in the ledger. In addition to the above two entries described, Red Hen PTY. LTD. was in the books of Chooka's Steam Cleaning Services for $700 as a debtor and $300 as a creditor.

Provide a contra entry for Chooka's Steam Cleaning Services reducing the need to pay and receive amounts to Red Hen PTY. LTDd and discuss how you would liaise with the company to resolve the problem.

Answer rating: 100% (QA)

To provide a contra entry for Chookas Steam Cleaning Services that reduces the need to pay and receive amounts to Red Hen PTY LTD we need to offset th... View the full answer