The general ledger posting from the sales journal if a business is registered for GST is:

Select one:

a.

Debit to Accounts Receivable, credit to Sales, credit to GST collections

b.

Debit to Sales, credit to Accounts Receivable

c.

Debit to Cash, debit to GST collections, credit to Accounts Receivable

d.

None of the above

e.

Debit to Sales, credit to GST collections, credit to Cash

2

In 2020 Norman Pty Ltd had net credit sales of $75,000. On 1 July 2019, the Allowance for Doubtful Debts had a credit balance of $1,800. During 2020, $3,000 of uncollectable accounts receivable were written off. Ageing of accounts receivable revealed that the allowance should be 8% of the balance in receivables. If the accounts receivable balance at 30 June 2020 was $20,000, what is the required adjustment to the Allowance for Doubtful Debts at 30 June 2020?

Select one:

a.

$1,600

b.

$7,500

c.

$2,800

d.

$3,000

e.

$6,000