Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

ANZ Kitchen Appliances Pty Ltd has the following information for the month ended 30 th June 2022: Accounts receivable has a debit balance of $176,550

ANZ Kitchen Appliances Pty Ltd has the following information for the month ended 30th June 2022:

  • Accounts receivable has a debit balance of $176,550 (including the balance of C. Cathys account) at 1 June 2022.
  • Allowance for doubtful debts has credit balance of $11,220 at 1 June 2022.
  • On 15 June, received $3,300 of the account balance of C. Cathys of $13,200 and
  • On 16 June, wrote off the remaining balance of C.Cathys as a bad debt.
  • On 30 June, estimated bad debts expense for the year to be 2% of net credit sales of $825,000.

Required:

  1. Prepare general journal entries for the transactions on 15, 16 and 30 June (ignore GST).
  2. Assuming that this is the only bad debt written off for the year and this is the only adjustment to the allowance for doubtful debts account, show the information that will appear in the income statement for the year ended 30th June 2022 as a result of the above transactions.
  3. Show how accounts receivable will appear in the balance sheet as at 30th June 2022.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cost Accounting Foundations and Evolutions

Authors: Michael R. Kinney, Cecily A. Raiborn

8th Edition

9781439044612, 1439044619, 978-1111626822

More Books

Students also viewed these Accounting questions