Refer to the data in exercise 18.6. Assume that the firm is registered for the GST, i.e.
Question:
Refer to the data in exercise 18.6. Assume that the firm is registered for the GST, i.e. consulting fees owing will be $517 000 (including GST) and debts to be written off are $10 010 (including GST).
Required
A. Prepare the appropriate general journal entries.
B. Prepare and balance the Allowance for Doubtful Debts account at 30 June 2015.
C. Show the amount(s) to be charged as bad debts expense for the year.
Data from Exercise 18.6:
The following details were obtained from the accounting records of Civil Construction Consultants at the end of the financial year.
Consulting fee owing Allowance for doubtful debts Debts to be written off | $470 000 30 000 9 100 | (excludes GST) (excludes GST) |
The firm requires an allowance for doubtful debts of 10% of outstanding fees at 30 June. Ignore GST.
Step by Step Answer:
A June 30 Bad Debts Expense 17 000 Allowance for Doubtful Debts 1 7 000 Allowed for bad ...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
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