On 30 June, the end of its financial year, Burnside Consulting completed an age analysis of its accounts receivable and determined that an allowance for doubtful debts of $12 320 was needed in order to report accounts receivable at their estimated collectable amount in the balance sheet. Assume a 10% GST.

Required

A. Prepare the entry to record bad debts expense assuming that the Allowance for Doubtful Debts account currently has a $1940 credit balance.

B.  Prepare the entry to record bad debts expense assuming that the Allowance for Doubtful Debts account currently has a $820 debit balance.

C. Prepare the entry to write off an account receivable from G. Smith for $781.

D. Prepare the entry to write off the account receivable in C above if the business was not registered to the GST.

E. Assume that before the entry recorded in requirement C above, the net amount of accounts receivable was $99 000 including GST. What is the net amount receivable from accounts receivable after recording the write-off of Smith’s account? Explain.