Reference no: EM132950290

Question - The ledger accounts for Sue Lee's accounts as at 30 June 2017 reveals the following:

Allowance for doubtful debts 1 July 2016 $3,200

Accounts receivable balance 1 July 2016 $68,070

During the year the following transactions 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

Required - (a) Record the above transactions as at 30 June 2017 in the general journal i. Further bad debts to be written off amount to $1,870 including GST ii. Allowance for doubtful debts is to be adjusted to 5% of accounts receivable (b) Based on the above complete the general ledger accounts as at 30 June 2017 (c) Complete a Balance Sheet (extract) as at 30 June 2017.