Question 4 - Bills Receivable, Receivables, Bad Debts using allowance method with GST of 10% 1 Jun ABC Ltd had an account receivable from XYZ Ltd in the amount of $20,000 that was overdue. XYZ Ltd requested an extension on the payment date and ABC Ltd agreed by accepting a 60 day, 10% bill of exchange. 30 Jun Balance date 31 July ABC Ltd received cash from XYZ Ltd in settlement of the bill of exchange. (a) Prepare general journal entries to record all the above transactions, including any balance day adjustments (GST is 10%, narrations are not required). 5 Jun Received $10,500 from DEF Ltd in full payment of their account, which had previously been written off as uncollectible. 7 Jun ABC Ltd wrote off an account receivable for KLM Ltd in the amount of $7,300. Sales revenue for the year (as reported in the Income Statement) was $300,000, and 75% of sales are made on credit. ABC Ltd expects 3.5% of net credit sales 30 Jun to become uncollectible. 6) Prepare general journal entries to record all the above transactions (GST is 10% narrations are not required)