Additional Information

At the end of the $2023$ financial year, Scallion Ltd identified the following items that need to be resolved before financial statements are prepared. GST has been correctly accounted for on these non$-$current asset transactions.

$1.$ On $1$st July $2022,$ Scallion Ltd purchased a used machine for $$65,000$ cash. The cost was debited to the $$Machinery$$ account in the ledger. Prior to use, additional expenses were incurred for installing and testing the machine. These costs amounted to $$7,400$ and were debited to the $$repairs and maintenance expenses$$ account. The installation and testing was completed on $1$st October $2022,$ and the machine was brought into use on that date. The machine has an estimated useful life of $5$ years, with a residual value of $$6,000.$ Scallion uses straight$-$line depreciation for machinery and records depreciation to the nearest month. No depreciation has yet been provided in respect of this asset in the current year.

$2.$ On $2$nd July $2022,$ a small building and land were purchased for $$350,000.$ The purchase price was determined by appraisers based on a fair value of $$250,000$ for the land, and $$100,000$ for the building. The total purchase consideration of $$350,000$ was debited to the $$land$$ account. The building has an estimated useful life of $10$ years with no residual. Scallion uses straight line depreciation for buildings. No depreciation has yet been provided for the building in the current year. On $1$ June $2023,$ Scallion decided to adopt the revaluation model and to measure its land and buildings at fair value in the balance sheet. A valuation was carried out on $30$ June $2023,$ and the land was valued at $$295,000,$ and the building was valued at $$120,000.$ No entries have yet been passed in relation to these fair values. The fair value of the land and retail store acquired on $2$nd June $2020$ had not changed.

$3.$ A new truck was purchased on $31$st March $2023.$ Scallion Ltd paid cash of $$46,100.$ The truck has an estimated useful life of $4$ years with a residual value of $$13,300$ and is to be depreciated using the reducing balance method $($using a rate of $1\mathrm{.}5$ times the straight$-$line rate$).$ No depreciation has yet been provided in respect of this asset in the current year.

REQUIRED:

$1.$ Prepare any adjusting or correcting entries required as at $30$ June $2023$ in relation to the additional information provided above.

$2.$ Any entries necessary in respect of depreciation for each class of non$-$current assets discussed in the information given for the year ended $30$ June $2023$

$3.$ Scallion Ltd uses the allowance method of accounting for bad debts. One percent of net credit sales is estimated to be uncollectable for the year ended $30$ June $2023($round amount upward to nearest whole $$).$ On $30$ June, Scallion Ltd was notified by the lawyers of Croft Ltd that they had been declared bankrupt and were unable to pay the amount owing. This debt was subsequently written off.