Prepare journal entries for each of the above events

Assignment Help Financial Accounting

Reference no: EM133378892

(a) On 1 July 2022, WeCafe Pty Ltd had a debit balance $78,200 in accounts receivable and a credit balance $16,800 in the allowance for doubtful debts.

On 3 July, WeCafe was notified by Fantastic Holiday Pty Ltd that the business had been declared bankrupt and will not be able to pay back $5,060 owed to WeCafe from a credit sale in June 2022.

On 25 July 2022, WeCafe was notified by another debtor, FirstLeisure Pty Ltd, that $1,540 (GST Inclusive) that had been written off as uncollectible in May 2022 would be paid in full in August 2022.

At the end of year on 31 July 2022, the managers reassessed the allowance for doubtful debts and decided on a closing balance of $16,320 (GST Exclusive) under the ageing of receivables approach.

Required:

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

Reference no: EM133378892

Questions Cloud

Stock returns to alter over time and if he reason behind it : Can you explain if there would be any variations in the correlation between US stocks and stocks from other nations during the COVID-19 pandemic

Global marketing : Explain the TRIAD and Expanded TRIAD

What advice would you give this organization : The agency will be losing 50% of its top management team in the next 6 months in response to an early retirment package.

Analysis of the rental agreement showed : Depreciation on the company's equipment for the year is computed to be $12,000. The Prepaid Insurance account had a $8,000 debit balance at December 31

Prepare journal entries for each of the above events : Prepare journal entries for each of the above events. Narrations are not required - allowance for doubtful debts and decided on a closing balance of $16,320

Characteristics of good and poor health leaders-managers : Knowledge and skills leading to mastery of this competency: Identify the characteristics of good and poor health leaders/managers.

How have thinking about immigrate children in canada : Using the lens of leadership in action for ECE field, how have your views, perspectives, and thinking about immigrate children in Canada?

Anticipated california apportionment factor reflecting : current California apportionment factor, which includes G's receipts, or its anticipated California apportionment factor reflecting the sale of G

How can a company underwrite or sell a lot of windstorm : Even though windstorms pose a catastrophic exposure, windstorm coverage is typically included in homeowner insurance policies. How can a company underwrite

User Account

All Pages