Big Coffee Pty Ltd is a company selling coffee in Melbourne, Australia. The company records...
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Big Coffee Pty Ltd is a company selling coffee in Melbourne, Australia. The company records the income from the sale of coffee beans in its assessable income at the time of sale. But customers have days to pay for their purchase. If the debt is unpaid after days, Big Coffee adds the debt to its provision for bad debts On June, Big Coffee classifies any debts that have been outstanding for more than months as bad and transfers them to a debt collection agency, so they are no longer debts of the company. The debts are removed from Big Coffees accounts ie writtenoff on July. Big Coffee, has asked you, its tax adviser, as to if and when it can claim a bad debt deduction for income tax purposes.
Big Coffee Pty Ltd is a company selling coffee in Melbourne, Australia. The company records the income from the sale of coffee beans in its assessable income at the time of sale. But customers have days to pay for their purchase. If the debt is unpaid after days, Big Coffee adds the debt to its provision for bad debts On June, Big Coffee classifies any debts that have been outstanding for more than months as bad and transfers them to a debt collection agency, so they are no longer debts of the company. The debts are removed from Big Coffees accounts ie writtenoff on July.
Big Coffee, has asked you, its tax adviser, as to if and when it can claim a bad debt deduction for income tax purposes.
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You can see the logs in the Dashboard.