On 1 June, McLean, Roberts and Associates had Accounts Receivable and Allowance for Doubtful Debts accounts as
Question:
On 1 June, McLean, Roberts and Associates had Accounts Receivable and Allowance for Doubtful Debts accounts as set out below. The firm is registered for the GST.
Accounts Receivable | |||||
1/6 | Balance | 847 000 | |||
Allowance for Doubtful Debts | |||||
1/6 | Balance | 12 250 | |||
During June, the following transactions occurred.
1. Fees earned on credit, $1 200 000 plus GST.
2. Fees refunded, $25 000 plus GST.
3. Accounts receivable collected, $1 450 000.
4. Accounts written off as uncollectable, $14 740.
Based on an ageing of accounts receivable on 30 June, the firm decided that the Allowance for Doubtful Debts account should have a credit balance of $13 000 on the balance sheet as at 30 June.
Required
A. Prepare general journal entries to record the four transactions and to adjust the Allowance for Doubtful Debts account.
B. Show how accounts receivable and the allowance for doubtful debts would appear on the balance sheet at 30 June.
C. On 29 July, Blundell Ltd, whose $1870 account had been written off as uncollectable in June, paid its account in full. Prepare general journal entries to record the collection.
Accounts ReceivableAccounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
Step by Step Answer:
A Accounts Receivable 1 320 000 Fees Income 1 200 000 GST Payable 120 000 Fees charged in May Fees I...View the full answer
Accounting
ISBN: 978-1118608227
9th edition
Authors: Lew Edwards, John Medlin, Keryn Chalmers, Andreas Hellmann, Claire Beattie, Jodie Maxfield, John Hoggett
