Question: 12. 5 Doubtful debts-ageing method on 30 June, the end of its financial year, burnside consulting completed an age analysis of its account receivable and

12. 5 Doubtful debts-ageing method

on 30 June, the end of its financial year, burnside consulting completed an age analysis of its account receivable and determined that an allowance for doubtful debts of $12320 was needed in order to report accounts receivable at theircollectableamount in the balance sheetassume a 10% GST.

its required:

(a) prepare the entry to record bad debts expense assuming that the allowance for doubtful debts account currently has $1940 credit balance

(b) prepare theentry to record bad debts expense assuming that the allowance for doubtful debts account currently has $820 credit balance

(c)prepare theentry to write off an account receivable from G.smilf for $781

(d)prepare theentry to write off an account receivable in requirement C above if the business was not registered for the GST

(e) assume that before the entry recorded in requirement C above the net amount of accounts receivable was $99000 including GST what is the net amount of accounts receivable after recording the write-off of smith's account? explain

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!