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.

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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