Question
Ques - Adele evans started business on 1st July 2018. On 30th June 2019, after an extended effort to collect she found that she had
Ques - Adele evans started business on 1st July 2018. On 30th June 2019, after an extended effort to collect she found that she had written debts amounting to$ 8250 GST inclusive as bad and wrote off the account using the direct of method in addition, she found it necessary to create an allowance for doubtful debts of $12120
during the year 230 June 2020 debts totalling $5280 GST inclusive proved to be bad and written off and $1320 GST inclusive was recovered in respect of budgets previously written off. The total of debtors balances at 30th June 2020 was $337200 GST inclusive the amount is the amount after the bad debts had been written off and it was decided to increase the allowance for doubtful debts to 4% of this figure
the business is registered for GST
Required
Prepare journal entries to record all the above transactions for the year ending
a) 30th June 2019
b) 30 June 2020
Narration of each journal is required
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