On 1 January 2007 the balances below appeared in the sales ledger of S. Henry. $...

Transcribed Image Text:

On 1 January 2007 the balances below appeared in the sales ledger of S. Henry. $ 200 120 D. Fung C. Manley During the year the following events took place: Feb 1 After negotiation Henry agreed to accept $150 cash from D. Fung and regarded the outstanding balance as irrecoverable. Mar 10 C. Manley was declared bankrupt. A payment of 30 cents in the $ was received in full settlement. Show how these matters would be dealt with in Henry's ledger assuming that the financial year ends on 30 June. On 1 January 2007 the balances below appeared in the sales ledger of S. Henry. $ 200 120 D. Fung C. Manley During the year the following events took place: Feb 1 After negotiation Henry agreed to accept $150 cash from D. Fung and regarded the outstanding balance as irrecoverable. Mar 10 C. Manley was declared bankrupt. A payment of 30 cents in the $ was received in full settlement. Show how these matters would be dealt with in Henry's ledger assuming that the financial year ends on 30 June.

Answer rating: 100% (QA)

Assuming that S Henry uses the accrual accounting method the following journal entries would be made ... View the full answer