In this question you must create two journals. One journal will be for $15,000 and another journal will be for $12,500. The accounts you need to use will be bad debt expense, accounts receivable and provision for doubtful debts. You must select two accounts for the first journal (debit one account and credit another account) and the second journal (debit one account and credit another account). Hint: Please note that the journal for $12,500 is a provision.

Performance Task 2 You are Joan Jacks an Accountant for Riscko, a company that specialises in risk management. You regularly assess whether your debtors will become bad or doubtful debts. Riskco currently has two customers that they are performing a credit assessment on. Riskco provided Risk Management services in March for $15,000 to Ecam Pty Ltd (invoice number 21). Recently it was discovered that Ecam went into administration in June. The CFO of Riskco placed a claim into the liquidator for the Si 5,000 invoice. In July. the CFO received a letter from the liquidatcr that Riskco cannot recover the $15,000. You were talking to the CEDI of Oxan. Oxan has an invoice outstanding for 81 2.5130 for over forty-five days (invoice number 21). The CEO of Oxan just mentioned that in the current operating environment they are facing some difficulties. The CEO indicated that he would endeavor to pay the invoice balance of512,5i. However, he feels that it may not be likely. He mentioned that his customers are having cashflow issues as well. Riskco accounts receivable procedure manual If you are certain that a customer cannot repay their amount you must create a journal between accounts receivable and bad debt expense. The account code for accounts receivable is 6-'I03 and bad debt expense is \"ID-[1013. The code for provision for doubtful debts is T-UUGB. If you are unsure as to whether a customer can repay the amount, pleasejournal the amount between bad debt expense and provision for doubtful debts. Please include detailed descriptions in yourjournal entry. You are required to determine which {or both} customers of Riskco is a bad debt and which is a doubtful debt based on the information provide above. You must use the above customer details and the excerpt from the Riscko policies and procedures manual as a basis for your decision. For simplicity purposes please disregard GSTwhen producing your journal. Please create two journals dated 31 May 2020 for each client. Yourjournal entry will be different depending on whether the company is a bad debt or a doubtful debt. Please note that the bad debt expense is \"ID[1013. The code for provision for doubtful debts is ?-0003. The code for accounts receivable is 6-1003. Using spreadsheet software, please create and complete two journals, one for each customer. You may wish to use a template such as the one below: Date Account code Account name Description Debit Credit ,4 x: ,4 ,4 ,4 x: ,4 x: ,4 ,4 ,4 A Date Account code Account name Description Debit Credit ,4 x; x; ,4 x; x