The following questions are based on the material in Chapter 8: from

FNSACC312 Administer subsidiary accounts and ledger

Question 4

At 30 June, H. Henry has been examining the amounts outstanding from his Accounts Receivable.

One account, I. Doubt, owes $1,650 (including GST) but pays only $550 on 30 June, stating that he will be unable to pay the balance. Henry decides to write off the balance of Doubts debt as being unrecoverable.

Lester is both a customer and a supplier. Henry wants to adjust for a $660 balance both owing to, and owed by, L. Lester.

Required:

4(a) Record, as General Journal entries, the receipt of cash from customer I. Doubt and the write-off of the balance as irrecoverable.

General Journal of H. Henry GJ4
Date	Details	Folio	Debit	Credit
		N/A
		N/A
	Part payment received on debt owing I. Doubt	N/A
		N/A
		N/A
		N/A
	Balance of debt written off as bad I. Doubt	N/A

4(b) Record the General Journal entry for the contra adjustment.

General Journal of H. Henry GJ4
Date	Details	Folio	Debit	Credit
		N/A
		N/A
	Contra Entry L. Lester	N/A