The business of R Williams decided on 30 June 2022 to create an allowance for doubtful debts
Question:
The business of R Williams decided on 30 June 2022 to create an allowance for doubtful debts of $1200.
Using this data, you are required to:
• prepare the journal for the adjustment at 30 June 2022
• prepare the journal for closing the account at 30 June 2022
• post the journal entries to the general ledger accounts for doubtful debts expense and allowance for doubtful debts. This solution is used in question 10.17.
Question 10.17
On 30 June 2023 R Williams decides to increase the allowance for doubtful debts from $1200 (created in 2022)
to 5% of the accounts receivable control account balance of $49 995. Bad debts expense of $3553 had already been written off during the year.
Using the combined method you are required to prepare:
• adjustments and closing journal entries
• general ledger accounts that show the data given and the posting of the journals on the required dates
• an extract of the income statement, and
• an extract of the balance sheet.
Step by Step Answer:
Accounting An Introduction To Principles And Practice
ISBN: 9780170403832
9th Edition
Authors: Edward A. Clarke, Michael Wilson