Question: 2 (25 marks) Read the following information to answer Questions 2.1 to 2.3. On 1 June 2023, Superior Bait and Tackle Ltd had Accounts Receivable

2 (25 marks) Read the following information to answer Questions 2.1 to 2.3. On 1 June 2023, Superior Bait and Tackle Ltd had Accounts Receivable and Allowance for Doubtful Debts accounts as below. All amounts shown include GST. Accounts Recieveable Dr. 1/6 balance b/d $1214.86 Allowance for Doubtful Debts Cr. 1/6 Balance b/d $15730 The following transactions occurred during the month of June: 1. Credit sales totalled $1,708,850 2. Sales returns amounted to $34,463. 3. Cash collected from debts was $2,002,000. 4. Bad debts written of was $22,668. Based on an ageing of accounts receivable analysis on 30 June 2023, the firm determined that the Allowance for Doubtful Debts account should have a credit balance of $17,550 on the Statement of Financial Position as at 30 June 2023. Question 2.1 (13 marks) Prepare general journal entries to record the four transactions above and to adjust the Allowance for Doubtful Debts account to the required amount. Narrations are required. Please account for GST where where necessary Please copy and paste the template

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!

The rigid bar ABCD of negligible weight is initially horizontal, and the stee rods attached at A and C are stress-free. The 20-kip load is then applied and th temperature of the steel rods is changed...

SECTION 2 (25 marks) Read the following information to answer Questions 2.1 to 2.3. On 1 June 2023, Superior Bait and Tackle Ltd had Accounts Receivable and Allowance for Doubtful Debts accounts as...

Q21 options Sales Revenue Cash Allowance for bad debts Bad debt expense Accounts Receivable Q22 Allowance for bad debts Accounts receivable Bad debt expense Sales revenue Sales return and allowance...

SECTION 2 - Financial accounting (20% or approximately 24 minutes. 20 marks in total) Read the following information to answer questions 2.1 - 2.2. LA Fashion has credit sales of $6,400,000 for the...

Read the following information to answer questions 2.1 -2.2. LA Fashion has credit sales of $6,400,000 for the financial year ending June 30, 2021, and estimat at the end of the financial year that...

SECTION 2: On 1 June 2023, Superior Bait and Tackle Ltd had Accounts Receivable and Allowance for Doubtful Debts accounts as below. All amounts shown include GST. Accounts Recieveable Dr. 1/6 balance...

Answer items 1-8 on the Seantron form. Match each account or description on the left (1-8) with the appropriate classification (ae) on the right. (1 poiat each) 1. Uneamed subscription revenue 2. Fee...

second year auditing Background information - Q1 You are a final-year registered candidate auditor at Zolani Paulina and Khabzela Inc (ZPK), a Johannesburg-based firm of registered auditors. Your...

Professor never gave us an answer key, here y'all go if you feel up to it. Use the following data for the next 5 questions Marie Co. uses a periodic inventory system. The purchases of a particular...

provide full solution that will get full marks to the paper attached Name: .................................................... Student Number: .................................. Signature:...

es New Roma ' A A Aav Ao reverse IU de X, X? AD AED A Font Paragraph $ question. i) The following information is available for Birch Company at December 31: Money market fund balance $ 2800...

What are some causes of auditors becoming defendants in lawsuits?

The table below describes two alternative investments: Fund 1 and Fund 2. The table also provides the annual fee a client pays for investing in that fund, the return that fund has generated since...

Which of the following would be reported as an Asset with Restrictions on Use? Cash contributions restricted by the board for a specific new future program Cash restricted by debt covenants with...

omb: file format elf 6 4 - x 8 6 - 6 4 Disassembly of section . init: 0 0 0 0 0 0 0 0 0 0 4 0 1 0 0 0 : 4 0 1 0 0 0 : f 3 0 f 1 e fa endbr 6 4 4 0 1 0 0 4 : 4 8 8 3 ec 0 8 sub $ 0 x 8 , %...