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The following details were obtained from the accounting records of Civil Construction Consultants at the end of the financial year. Consulting fee owing $517 000
The following details were obtained from the accounting records of Civil Construction Consultants at the end of the financial year. Consulting fee owing $517 000 (includes GST) Allowance for doubtful debts 30 000 Debts to be written off 10 010 (Includes GST) The firm requires an allowance for doubtful debts of 10% of outstanding fees at 30 June. Required (a) Prepare the appropriate general journal entries. (5 marks) (6) Prepare and balance the Allowance for Doubtful Debts account at 30 June 2019. (5 marks) (c) Show the amount(s) to be charged as bad debts expense for the year. (1 mark) (d) Can the Allowance for Doubtful Debts account might have a debit balance before the end-of- period adjustment is made. Discuss
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