On 31 December 2019 Miner Resources Decided to Finally Write

question 41

Multiple Choice

On 31 December 2019 Miner Resources decided to finally write off as a bad debt a receivable of $6600 (including $600 GST) from Underground Pty Ltd (in liquidation) . If Miner Resources uses the allowance method, the correct entry to write off the debt is:

• A) DR Allowance for doubtful debts $6000; CR Bad debts expense $6000
• B) DR Bad debts expense $6600; CR Accounts receivable $6600
• C) DR Bad debts expense $6600; CR GST payable $600; CR Accounts receivable $6000
• D) DR Allowance for doubtful debts $6000, DR GST payable $600; CR Accounts receivable $6600

---

Definitions:

Early Retirements

A situation where an employee chooses to retire before the customary retirement age, often incentivized by employer offerings.

Involuntary Terminations

The act of ending an employee's contract or employment against their will, often due to layoffs or disciplinary actions.

Employee Leasing

Involves an organization paying a fee to a leasing company that provides a pool of employees who are available on a temporary basis. This pool of employees usually constitutes a group or crew intended to handle all or most of the organization’s work needs in a particular area.

Contingent Workforce

A labor pool consisting of people employed by organizations on a non-permanent basis, such as freelancers, temporary contract workers, or consultants.