On 1June2012, William Bay Ltd purchased a machine for $100 000. The entity adopts a straight-line depreciation method and uses 10% and 15% as Accounting depreciation rate andtax depreciation rate respectively. The salvage value is zero and the tax rate is 30%.

Additionally, net accounts receivables of the company was $57 000, and the allowance for doubtful debts was $3 000. On 30 June 2013, the respective balances were $64 000 and $4000.

Required

Assuming there were no other temporary differences, prepare the journal entry to adjust for the changes in these balances as at 30 June 2013? The corporate tax rate is 30%.