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Brisbane Lid uses a perpetual inventory system. Brisbane Ltd is now preparing adjusting entrias for the year ended 30 June 2022. Given the information below, prepare any adjusting or correcting journal entries which may be required for (a) to (e). (a) Brisbane Ltd sells products and offers a two year warranty where the products can be exchanged if found to be faulty. On average, 5% of products that are sold in any given year are returned as faulty. Sales revenue for the year was $200,000 and COGS was $40,000. Prepare the journal entry to update the company records to account for the warranty liability. [2 marks] 30 June 2022 DR Amount not required CR Amount not required (b) On 1 May, Brisbane Ltd received a payment in advance of $10,000 for work to be performed in June. This transaction on 1 May was processed correctly. The work has now been completed in June 2022. [2 marks] 30 June 2022 DR Amount not required CR Amount not required (e) Below is some information relating to Accounts Receivable for the year ended 30 June 2022 for Brisbane Ltd to be used for the following two journal entries: 1. Accounts Receivable opening balance was $4,000, closing balance $7,000 2. Allowance for Doubtful Debts opening balance $500, closing balance $300 3. Credit sales for the year came to $72,000 4. Cash received from customers relating to credit sales was $65,000 (i) Prepare the joumal entry relating to write-off of the bad debts over the year. [2 marks] DR Amount not required Amount not required (ii) Prepare the journal entry relating to recognition of bad debts expense over the year. [3 marks] Amount $ Amount not required (e) Below is some information relating to Accounts Receivable for the year ended 30 June 2022 for Brisbane Ltd to be used for the following two journal entries: 1. Accounts Receivable opening balance was $4,000, closing balance $7,000 2. Allowance for Doubtful Debts opening balance $500, closing balance $300 3. Credit sales for the year came to $72,000 4. Cash received from customers relating to credit sales was $65,000 (i) Prepare the joumal entry relating to write-off of the bad debts over the year. [2 marks] DR CR Amount not required Amount not required (ii) Prepare the journal entry relating to recognition of bad debts expense over the year. [ 3 marks] Amount $ Amount not required

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