8. An extract of Super Snooper's ledger accounts at 30 June 2018 reveals the following: Allowance for Doubtful Debts 1 July 2017 $3,200 $68,070 Accounts Receivable balance 1 July 2017 During the year to 30 June 2018 the following occurred: • Credit sales $305,800 including GST. • Receipts from customers $263,200. • Bad Debts written off $1,600 plus $160 GST. • Discount allowed $2,640 including GST. At 30 June 2018: • Further Bad Debts to be written off amount to $1,870 including GST. • Allowance for Doubtful Debts is to be adjusted to 5% of Accounts Receivable. Required: (a) General Journal entries for the $1,760 and $1,870 bad debt write-off and adjustment to the Allowance for Doubtful Debts at 30 June. (b) Ledger accounts for Bad Debts, Doubtful Debts, Allowance for Doubtful Debts and Accounts Receivable. (c) Balance Sheet extract for Accounts Receivable at 30 June 2018.
8. An extract of Super Snooper's ledger accounts at 30 June 2018 reveals the following: Allowance for Doubtful Debts 1 July 2017 $3,200 $68,070 Accounts Receivable balance 1 July 2017 During the year to 30 June 2018 the following occurred: • Credit sales $305,800 including GST. • Receipts from customers $263,200. • Bad Debts written off $1,600 plus $160 GST. • Discount allowed $2,640 including GST. At 30 June 2018: • Further Bad Debts to be written off amount to $1,870 including GST. • Allowance for Doubtful Debts is to be adjusted to 5% of Accounts Receivable. Required: (a) General Journal entries for the $1,760 and $1,870 bad debt write-off and adjustment to the Allowance for Doubtful Debts at 30 June. (b) Ledger accounts for Bad Debts, Doubtful Debts, Allowance for Doubtful Debts and Accounts Receivable. (c) Balance Sheet extract for Accounts Receivable at 30 June 2018.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Concept explainers
Bad Debts
At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
Question
Transcribed Image Text:308
8. An extract of Super Snooper's ledger accounts at 30 June 2018 reveals the following:
Allowance for Doubtful Debts 1 July 2017
$3,200
Accounts Receivable balance 1 July 2017
$68,070
During the year to 30 June 2018 the following occurred:
• Credit sales $305,800 including GST.
Receipts from customers $263,200.
• Bad Debts written off $1,600 plus $160 GST.
• Discount allowed $2,640 including GST.
●
At 30 June 2018:
Further Bad Debts to be written off amount to $1,870 including GST.
• Allowance for Doubtful Debts is to be adjusted to 5% of Accounts Receivable.
Required: (a) General Journal entries for the $1,760 and $1,870 bad debt write-off and
adjustment to the Allowance for Doubtful Debts at 30 June.
(b) Ledger accounts for Bad Debts, Doubtful Debts, Allowance for Doubtful Debts
and Accounts Receivable.
(c) Balance Sheet extract for Accounts Receivable at 30 June 2018.
General Journal of Super Snooper
Particulars
Acc No.
(a)
●
Date
Accounting Principles
Debit
Credit
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