At 30 June, H. Henry has been examining the amounts outstanding from his Accounts Receivable.

One account, I. Doubt, owes $1,650 (including GST) but pays only $550 on 30 June, stating that he will be unable to pay the balance. Henry decides to write off the balance of Doubt’s debt as being unrecoverable.

Lester is both a customer and a supplier. Henry wants to adjust for a $660 balance both owing to, and owed by, L. Lester.

Required:

(a) Record, as General Journal entries, the receipt of cash from customer I. Doubt and the write-off of the balance as irrecoverable.

Answer rating: 100% (QA)

To Record I Doubt Partial Payment subsequent recognition of bad debts on the remaining balance ... View the full answer