י Plankton Ltd deals in ceramic pots and figurines. All sales are conducted on a credit basis and no cash discounts are given. Ignore GST. The following Time left 1:21:05 information was extracted from the accounting records at 30 June 2023: Credit Sales Sales returns and allowances Cash collected $ 552,000 37,900 Debts to be written off Allowance for Doubtful Debts 1 July 2022 319.120 4,022 2,645 Cr Assume that Plankton Ltd uses the direct write-off method of accounting for bad debts. What would the general journal entry be to write off the bad debt? Select one: O a. Dr Bad debts expense $4,022; Credit Allowance for doubtful debts O b. Dr Bad debts expense $1,377; Credit Allowance for doubtful debts $1,377 O c. Dr Bad debts expense $4,022; Credit Accounts receivable $4,022 O d. Dr Bad debts expense $1,377; Credit Accounts receivable $1,377 O e. None of the above 0

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Plankton Ltd deals in ceramic pots and figurines. All sales are conducted on a credit basis and no cash discounts are given. Ignore GST. The following
Time left 1:21:05
information was extracted from the accounting records at 30 June 2023:
Credit Sales
Sales returns and allowances
Cash collected
$
552,000
37,900
Debts to be written off
Allowance for Doubtful Debts 1 July 2022
319.120
4,022
2,645 Cr
Assume that Plankton Ltd uses the direct write-off method of accounting for bad debts. What would the general journal entry be to write off the
bad debt?
Select one:
O a. Dr Bad debts expense $4,022; Credit Allowance for doubtful debts
O b. Dr Bad debts expense $1,377; Credit Allowance for doubtful debts $1,377
O c.
Dr Bad debts expense $4,022; Credit Accounts receivable $4,022
O d. Dr Bad debts expense $1,377; Credit Accounts receivable $1,377
O e. None of the above
0
Transcribed Image Text:י Plankton Ltd deals in ceramic pots and figurines. All sales are conducted on a credit basis and no cash discounts are given. Ignore GST. The following Time left 1:21:05 information was extracted from the accounting records at 30 June 2023: Credit Sales Sales returns and allowances Cash collected $ 552,000 37,900 Debts to be written off Allowance for Doubtful Debts 1 July 2022 319.120 4,022 2,645 Cr Assume that Plankton Ltd uses the direct write-off method of accounting for bad debts. What would the general journal entry be to write off the bad debt? Select one: O a. Dr Bad debts expense $4,022; Credit Allowance for doubtful debts O b. Dr Bad debts expense $1,377; Credit Allowance for doubtful debts $1,377 O c. Dr Bad debts expense $4,022; Credit Accounts receivable $4,022 O d. Dr Bad debts expense $1,377; Credit Accounts receivable $1,377 O e. None of the above 0
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