Emma, the new bookkeeper has completed the following transaction regarding end of year adjustments (30/06/2020) and you are assigned to review and correct the work in accordance with Fresh Flowers’ organisational policy and procedures.
Transaction completed by Emma
Fresh Flowers supplied wedding flowers for Mr & Mrs White and invoiced $4,000 including GST on 05/05/2020. Unfortunately, they got divorced right after the honeymoon and it has been difficult to get in contact with either of them. There has been only one reminder sent out.
They are not a company
| 30/06/2018 | Bad Debts | 4,000 | |
| Debtors | 4,000 | ||
| Write off debt debts due to Disappearance of a customer – Mr & Mrs White |
- Identify transaction errors above and refer decision making errors for resolution in accordance with appropriate company’s policy and procedures on Bad debts.
Suggest correct procedures on Mr & Mrs White’s case
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