Awesome Restorations Pty Ltd opened a Hardware Shop in 2010. They use the Net Credit Sales method for estimating Doubtful Debts and it appears that 4% of Credit Sales will not be collected this year. There is a balance in the Allowance for Doubtful Debts ledger account on 1 July, 2022 of $516 300.
On 8 October, 2022 a customer I. Liquid who owed Awesome Restorations Pty Ltd $54 620 went Bankrupt and was written off as a Bad Debt. On the 24 April, 2023 his fixed assets were sold and I. Liquid managed to pay back only $32 960 of the total debt he originally owed.
On 30 June, 2023 an entry was required for estimated Allowance for Doubtful Debts. Total Sales for the next financial year ending 30 June, 2024 are expected to be $17 200 000 of which 96% will be Credit Sales.
Required:
[Use 4 Columns - Date / Account / Debit / Credit, to prepare General Journal entries, to record the above information.] (Narrations are not required).
