The GST RATE IS 10 %

Smart Builder is registered for GST in Australia and provides renovation services to corporate customers on credit terms. The business uses the aging of accounts receivable method to account for bad debts. An extract of its balance sheet at 1 December 2021 showed: Current Assets Accounts Receivable $550,000 Less Allowance for Doubtful Debt ($100.000) Net Receivable $450.000 Accounting records also showed: Total net credit sales for the year ended 31 December 2021 amounted to $6,500,000 plus GST. Cash collections for the same financial year amounted to $6,600,000. b. If actual bad debts written off for the year ended 31 December 2021 amounted to $99,000 inclusive GST, prepare Smart Builder's Accounts Receivable Control ledger account (in T-format) to include all the above transactions and close the account for the year. [5 marks] Smart Builder is registered for GST in Australia and provides renovation services to corporate customers on credit terms. The business uses the aging of accounts receivable method to account for bad debts. An extract of its balance sheet at 1 December 2021 showed: Current Assets Accounts Receivable $550,000 Less Allowance for Doubtful Debt ($100.000) Net Receivable $450.000 Accounting records also showed: Total net credit sales for the year ended 31 December 2021 amounted to $6,500,000 plus GST. Cash collections for the same financial year amounted to $6,600,000. b. If actual bad debts written off for the year ended 31 December 2021 amounted to $99,000 inclusive GST, prepare Smart Builder's Accounts Receivable Control ledger account (in T-format) to include all the above transactions and close the account for the year. [5 marks]