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Assume that the allowance account had a debit balance of $660 at 30 June 2018. Show the journal entries to record the allowance for doubtful
Assume that the allowance account had a debit balance of $660 at 30 June 2018. Show the journal entries to record the allowance for doubtful debts at 30 June 2019 under: 1. the net credit sales method 2. the ageing of accounts receivable method. (Enter debit entries first, followed by credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Great Outdoors Ltd General journal (extract) Net credit sales method Debit Date Particulars Credit June 30 Bad debts expense + 15300 Allowance for doubtful debts 15300 (Allowance made on 2% of net credit sales) Great Outdoors Ltd General journal (extract) Ageing of accounts receivable method Debit Date Particulars Credit June 30 Bad debts expense 16997 Allowance for doubtful debts 16997 (Allowance made on ageing of accounts receivable) Using the journal entries from requirement C, determine the balance in the allowance account under both methods. (Post entries in the order displayed in the problem statement. Leave blank any fields following your answers that do not require an entry. For example, if there are two rows for entries, and only one entry is required, enter your answer in the first row and leave the second row blank.) Allowance for doubtful debts (Net credit sales method) + Allowance for doubtful debts (Ageing of accounts receivable method)
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