Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

While accounting for accounts receivable for Easy DVD Ltd, the following information became available to the accountant. The company provides an allowance for doubtful debts

While accounting for accounts receivable for Easy DVD Ltd, the following information became available to the accountant. The company provides an allowance for doubtful debts at the rate of 3% of accounts receivable at 30 June each year. The balance of the Allowance for doubtful Debts account on 1 July 2018 was $10 000 CR.

To 30 June 2019, debts amounting to $12 000 were written off as bad debts. On 30 June 2019, the Accounts Receivable (GST exclusive) account balance was $400 000.

On 1 July 2019, Easy DVD Ltd registered for GST and started to account for GST in its accounting system. To 30 June 2020, debts amounting to $16 500 were written off. On 30 June 2020, the Accounts Receivable (GST inclusive) account balance was $495 000.

Required: Prepare the necessary general journal entries (narrations not required).

GST: 10%

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Guidelines For Laboratory Quality Auditing

Authors: Donald C. Singer, Ronald P. Upton

1st Edition

0824787846, 978-0824787844

More Books

Students also viewed these Accounting questions