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
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