Refer to the information in exercise 18.1. Complete requirements A and B but this time include the impact of a 10% GST.

If GST is introduced the information extracted from the accounting records would be:

                  Sales                                                                        $552000

                  Sales Returns & Allowances                                 37900

                  Cash Collected ($319 120 + GST)                         351032

                  Bad Debts to be written off                                  4 022

                  Accounts Receivable written off ($4022 + GST)  4 424

                  GST Payable ($552000 – $37900) x 10%            51410

Data from exercise 18.1:

Centenary Ceramics deals in ceramic pots and figurines. All sales are conducted on a credit basis and no cash discounts are given. Ignore GST. The following information was extracted from the accounting records at 30 June 2015:

Sales Sales returns and allowances Cash collected Debts to be written off

$552 000 37 900 319 120 4 022