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.

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

• Journal entry to show Allowance for doubtful debts

Show calculations

• Journal entry to show Bad debts expense

Show calculations

(b) Prepare and balance the Allowance for Doubtful Debts T account at 30 June 2019