3. Garfield Gifts (Bad and Doubtful Debts) Assume that at 30 June 2018: • Accounts Receivable balance is $343,630. • Balance of Allowance for Doubtful Debts is $4,200. • Bad Debts to be written off are $3,630 including GST. • Allowance for Doubtful Debts to be adjusted to 3% of Accounts Receivable. Required: (a) General Journal entries to record the Bad Debts and Allowance adjustment. (b) Extracts of Income Statement and Balance Sheet.

3. Garfield Gifts (Bad and Doubtful Debts) Assume that at 30 June 2018: • Accounts Receivable balance is $343,630. • Balance of Allowance for Doubtful Debts is $4,200. • Bad Debts to be written off are $3,630 including GST. • Allowance for Doubtful Debts to be adjusted to 3% of Accounts Receivable. Required: (a) General Journal entries to record the Bad Debts and Allowance adjustment. (b) Extracts of Income Statement and Balance Sheet.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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