Reference no: EM132713962

On 1 July 2020 Olympic had an accounts receivable ledger balance of $75,000 debit and a credit balance in the allowance for doubtful debts ledger account of $15,000.

• On 3 July Olympic's was contacted by John and Mark Pty Ltd to notify that the business had been declared bankrupt and that they would not be able to pay the $5,500 owing to Olympic's Hardware from a previous credit sale made to them in June 2020.
• The business received notification from Johnson Pty Ltd on 25 July 2020 that, $1,100 (GST inclusive) that had previously been written off as uncollectible in May 2020 would be paid in full in August 2020.
• On 31 July 2020 Management reassessed the allowance for doubtful debts at year end and decided on a closing balance of $12,200 (GST exclusive) under the ageing of receivables approach.

Required:

Problem 1: Prepare journal entries for each of the above events. Narrations are not required