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. a. A cheque of $23,870 received from Leo Holdings on 31 December 2021 as payment in full for the debt that was written off as bad debts earlier in the financial year. i. Using the Accounts Receivable Subsidiary Ledger Method, prepare Smart Builder's general journal. Provide a narration to explain each journal entry. [6 marks]