Reference no: EM132466915

Centenary Ceramics deals in ceramic pots and figurines. All sales are conducted on a credit basis and are GST inclusive. No cash discounts are given.

The following information was extracted from the accounting records at 30 June 2019:

Sales                                           $607 200

Sales returns and allowances              41 690

Cash collected                               351 032

Debts to be written off                    4 424

Required

Question (a) Assume that Centenary Ceramics uses the direct write-off method of accounting for bad debts.

Problem i. Show the general journal entry required to write-off the bad debts.

Problem ii. What amount would be shown for bad debts expense in the income statement at 30 June 2019?

Problem iii. What amount would be shown for accounts receivable in the balance sheet at 30 June 2019?