For each scenario calculate the adjustment at 30 June 2017 and identify the accounts that will be Debited and Credited.

1. The balance of the Allowance for Bad Debts is $9,000. The calculation for the allowance using the Ageing of Receivables method results in a value of $9,800.

Adjustment at 30 June 2017 Answer

Dr Account: Answer Bad Debt Expense OR Allowance for Bad Debts

Cr Account: Answer Bad Debt Expense OR   Allowance for Bad Debts

  

2. All the special journals have been posted for the current year. The account Supplies on Hand has a balance of $8,000. A count of supplies reveals that there are actually $6,000 on hand.

Adjustment at 30 June 2017 Answer

Dr Account: Answer Supplies Expense OR   Supplies on Hand

Cr Account: Answer Supplies Expense OR   Supplies on Hand

3. The following journal was processed on 1 May 2017 - no adjustments have being made:

		Dr	Cr
Prepaid Rent		24,000
GST		2,400
Cash At Bank			26,400
Payment of 12 months rent

Adjustment at 30 June 2017 Answer

Dr Account: Answer Prepaid Rent OR   Cash at Bank OR   Rent Expense

Cr Account: Answer Prepaid Rent OR   Cash at Bank OR   Rent Expense