Year 12 Accounting - Allowance for Doubtful Debts by qhq29331

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									       Year 12 Accounting - Allowance for Doubtful Debts
Scenario 1: Allowing for Doubtful Debts for the First Time
    Write off bad debts $2000
    Allow for doubtful debts at 5% of debtors

General Ledger

                                           Debtors Control

30 June Balance                    40000




                                      Bad Debts

30 June Balance                    1500



                                           Allowance for Doubtful Debts




                                            Doubtful Debts




                                   General Journal
Date       Particulars                           Debit         Credit




                                                  NOBLE: BETA Conference 2008
Scenario 2: Allowing for Doubtful Debts when Allowance for Doubtful Debts
exceeds bad debts

      Write off bad debts $850
      Allow for doubtful debts at 4% of debtors

General Ledger
                                            Debtors Control

30 June Balance                     40000




                                       Bad Debts

30 June Balance                     1150



                                            Allowance for Doubtful Debts

                                                   1 July Balance            2500




                                 Doubtful Debts




                                    General Journal
Date       Particulars                             Debit            Credit




                                                   NOBLE: BETA Conference 2008
Scenario 3: Allowing for Doubtful Debts when Allowance for Doubtful Debts is less
than bad debts

      Write off bad debts $650
      Allow for doubtful debts at 6% of debtors

General Ledger
                                            Debtors Control

30 June Balance                     35000




                                       Bad Debts

30 June Balance                     1600



                                    Allowance for Doubtful Debts

                                                   1 July Balance            1300




                                    Doubtful Debts




                                    General Journal
Date       Particulars                             Debit            Credit




                                                   NOBLE: BETA Conference 2008

								
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