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On 1 July 2019, Meow Limited had an accounts receivable balance of $205,000 and an allowance for doubtful debts balance of $4,100. During the year
On 1 July 2019, Meow Limited had an accounts receivable balance of $205,000 and an allowance for doubtful debts balance of $4,100. During the year ended 30 June 2020, credit sales amounted to $75,500 and cash collected from customers was $81,000. At the end of the financial year, the credit manager decided that accounts totaling $1,600 should be written off as bad debts. An aging analysis shows that the ending balance of allowance for doubtful debts should be 56,200. Prepare all the related journal entries including: Credit sales (1 mark) Collection of cash (1 mark) Write-off of bad debt (2 mark) and Recognizing the bad debt expense (3 mark)
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