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Question & Answer: While Richard has been recording stock movements, Sandy has been keeping track of the businesses' debtors. Sandy has analysed each of the debtors that owes the company mo…..

While Richard has been recording stock movements, Sandy has been keeping track of the businesses debtors. Sandy has analysed each of the debtors that owes the company money and been able to construct the following table. Amount doubtful % Accounts not yet due $11550 0.5 Accounts overdue: 1-30 days 31-60 days 61-150 days 151 days and over All include GST 7700 9020 5060 2640 $35970 3.0 10.0 30.0 80.0 Sandy has informed you that the current balance of the Allowance for Doubtful Debts Account is a $3800 Cr. REQUIRED2 Show the general journal entry required to adjust the allowance for doubtful debts accounts based on the information provided by Sandy.

While Richard has been recording stock movements, Sandy has been keeping track of the businesses’ debtors. Sandy has analysed each of the debtors that owes the company money and been able to construct the following table. Sandy has informed you that the current balance of the Allowance for Doubtful Debts Account is a $3800 Cr. REQUIRED 2 Show the general journal entry required to adjust the allowance for doubtful debts accounts based on the information provided by Sandy.

Expert Answer

 

journal entries would be

bad debt expense $1,020.75 Dr

allowance for doubtful accounts $1,020.75 Cr

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