Wages due but not paid $1800 Electricity bill due but not paid amounting to $450 Insurance had been paid for the period 1 April 2017 to 31 March 2018 for an amount of $3,600. Interest earned but not yet received of $750 Depreciation – Van $1,400
Bad Debts
At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
- Wages due but not paid $1800
- Electricity bill due but not paid amounting to $450
- Insurance had been paid for the period 1 April 2017 to 31 March 2018 for an amount of $3,600.
- Interest earned but not yet received of $750
Depreciation – Van $1,400- Rent received in advance $3,000
Bad Debts to be written off for $1,320.00 including GST.- Doubtful debts totalling $1200
- Create Provision for Long Service Leave $5,000
- Long Service Leave taken $1,500
- Obsolete stock during stocktake amounting $550 which needs to be written off.
- Th Credit sales occurring during the current period amounting to $440 (inclusive GST) were not recorded. e cost of sales was $250.
write general jounrnal each
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