The following information relates to the business of Stonebridge Pty Ltd for the year ending 30 June 2019. The company had a closing balance of $9,000 credit in its allowance for doubtful debts account and $54,000 debit balance in accounts receivable.

On 10^th July 2019, the business provided services on credit to Rain Passion Pty Ltd, of $11,000 (GST inclusive).

Unfortunately Rain Passion Pty Ltd notified Stonebridge on 31^st July 2019 that they had declared bankruptcy and as a result could not pay their bill.

The business received on 7^th August 30% of $22,000 owed by Essence Pty Ltd from sales in a previous period.

Rain Passion Pty Ltd contacted Stonebridge on 5^th September 2019 to confirm they had paid $2,200 that was previously thought to be uncollectable.

On 30^th September 2019, Management informs you that they have reassessed the allowance for doubtful debts and have decided on a closing balance at the end of September of $15,000 (GST exclusive) under the ageing of receivables approach.

GST IS 10%

REQUIRED:

Prepare the necessary properly formatted general journal entries to record the transactions as shown above. You should allow for GST where applicable when completing your journal entries.

Narrations are NOT required.