For each scenario calculate the adjustment at 30 June 2017 and identify the acco
ID: 2333889 • Letter: F
Question
For each scenario calculate the adjustment at 30 June 2017 and identify the accounts that will be Debited and Credited.
1. The balance of the Allowance for Bad Debts is $9,000. The calculation for the allowance using the Ageing of Receivables method results in a value of $9,800.
Adjustment at 30 June 2017 Answer
Dr Account: Answer Bad Debt Expense OR Allowance for Bad Debts
Cr Account: Answer Bad Debt Expense OR Allowance for Bad Debts
2. All the special journals have been posted for the current year. The account Supplies on Hand has a balance of $8,000. A count of supplies reveals that there are actually $6,000 on hand.
Adjustment at 30 June 2017 Answer
Dr Account: Answer Supplies Expense OR Supplies on Hand
Cr Account: Answer Supplies Expense OR Supplies on Hand
3. The following journal was processed on 1 May 2017 - no adjustments have being made:
Adjustment at 30 June 2017 Answer
Dr Account: Answer Prepaid Rent OR Cash at Bank OR Rent Expense
Cr Account: Answer Prepaid Rent OR Cash at Bank OR Rent Expense
Dr Cr Prepaid Rent 24,000 GST 2,400 Cash At Bank 26,400 Payment of 12 months rentExplanation / Answer
1) The balance of the Allowance for Bad Debts is $9,000. The calculation for the allowance using the Ageing of Receivables method results in a value of $9,800.
Dr Account = Bad debt expense
Cr Account = Allowance for bad debts
2. All the special journals have been posted for the current year. The account Supplies on Hand has a balance of $8,000. A count of supplies reveals that there are actually $6,000 on hand.
Dr Account = Supplies expense
Cr Account = Supplies on Hand
3. The following journal was processed on 1 May 2017 - no adjustments have being made:
Dr Account = Rent expense
Cr Account = Prepaid rent
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