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.