Reference no: EM132941118

North Office Innovations sells office furniture on a credit basis to businesses. The business is registered for GST. The following information was collected from North Office Innovations on 1 July 2020.

Accounts receivable (GST inclusive) balance $136,950
Allowance for doubtful debts balance $17,500

During the year ended 30 June 2021 the following transactions occurred:

1. During the year credit sales totaled $583,000 (GST inclusive)

2. Sales returns for the year were $20,537 (GST inclusive)

3. A separate customer, Barry Jones, whose account of $10,010 (GST inclusive) had been written off as bad before 1 July 2020 paid his account in full on 29 January 2021

4. On 9 April 2020, a customer, James Dunn, was declared bankrupt and his debt of $13,860 (GST inclusive) was written off

5. North Office Innovations collected $569,000 (GST inclusive) from customers

6. North Office Innovations has a policy to provide 2% of net credit sales as an allowance for doubtful dbts.

Required:

Problem 1: From the information above, show all entries in the following general ledger accounts:

1.1. Accounts receivable

1.2. Allowance for doubtful debts

1.3. Bad debts expense