4. Calculate the following, taking into consideration the relevant procedures set out in the company’s Financial Policy and Procedures: At the end of March, there is an overdue debt of $550 (including GST) that has been outstanding for 92 days. The amount is owed by Domestic Bliss for furniture renovation.
The debt was transferred to a debt collection agency, but the debt was not paid.
Record these transactions in the table provided in the Worksheet.
Show the general ledger entries you would make to record this bad debt.
At the end of June, there is a debt of $990 that has been owed for 65 days. The amount is owed by Tables and Chairs. How would you show this on the end of year reports?