The following details were obtained from the accounting records of Civil Construction Consultants at the end of the financial year. Consulting fee owing $517,000 (Includes GST) Allowance for doubtful debts 30,000 Debts to be written off 10 010 (Includes GST) The firm requires an allowance for doubtful debts of 10% of outstanding fees at 30 June. (a) Prepare the appropriate general journal entries. (b) Prepare and balance the Allowance for Doubtful Debts account at 30 June 2019. (c) Show the amount(s) to be charged as bad debts expense for the year.

The following details were obtained from the accounting records of Civil Construction Consultants at the end of the financial year. Consulting fee owing $517,000 (Includes GST) Allowance for doubtful debts 30,000 Debts to be written off 10 010 (Includes GST) The firm requires an allowance for doubtful debts of 10% of outstanding fees at 30 June. (a) Prepare the appropriate general journal entries. (b) Prepare and balance the Allowance for Doubtful Debts account at 30 June 2019. (c) Show the amount(s) to be charged as bad debts expense for the year.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter17: Advanced Issues In Revenue Recognition

Section: Chapter Questions

Problem 25E: Koolman Construction Company began work on a contract in 2019. The contract price is 3,000,000, and...

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