he following details were obtained from the accounting records of Cool Climate Consultants at the end of the financial year. Cool Climate Consultants is registered for GST.

Consulting fee owed to Cool Climate Consultants Allowance for doubtful debts Debts to be written off

$517 000 $30 000 $10 010

(includes GST) (Includes GST)

The firm requires an allowance for doubtful debts of 10% of outstanding fees at 30 June.

Required (a) Prepare the appropriate general journal entries to record adjustment to the allowance for doubtful debts and bad debts expense. Show calculations. 5 marks

Journal entry to show Allowance for doubtful debts

Show calculations Type your answers in the Table included in the Response Template below.

Journal entry to show Bad debts expense

Show calculations

Type your answers in the Table included in the Response Template below.

(b) Prepare and balance the Allowance for Doubtful Debts T account at 30 June 2019. 4 marks Type your answers to (b) in the Table included in the Response Template below.

Question 7 9 marks

The following details were obtained from the accounting records of Cool Climate Consultants at the end of the financial year. Cool Climate Consultants is registered for GST.

Consulting fee owed to Cool Climate Consultants Allowance for doubtful debts Debts to be written off

$517 000 $30 000 $10 010

(includes GST) (Includes GST)

The firm requires an allowance for doubtful debts of 10% of outstanding fees at 30 June.

Required (a) Prepare the appropriate general journal entries to record adjustment to the allowance for doubtful debts and bad debts expense. Show calculations. 5 marks

Journal entry to show Allowance for doubtful debts

Show calculations

Types your calculations here.

Type your journal entry answers in the Table below.

Date	Account	Dr	Cr

Journal entry to show Bad debts expense

Show calculations

Types your calculations here.

Type your journal entry answers in the Table below.

Date	Account	Dr	Cr

(b) Prepare and balance the Allowance for Doubtful Debts T account at 30 June 2019. 4 marks Type your answers to (b) in the Table below.

Allowance for Doubtful Debts
Date		Date

Type your answers here.