.T.Challa set up his firm on 1 Jan 2018. The total amount of Trade Receivables in the books was RM100,000 on 31 Dec 2018. He decided to write off 10% of the receivables as the Allowance for Doubtful Debts for the year ending 31 Dec 2018. The Trade Receivables was RM 200,000 in the year 2019 and RM 150,000 in the year 2020. The rate remained at 5%. Required : c) Prepare a Doubtful Debts account for the year 2018, 2019 and 2020 d) Prepare a Provision for Doubtful Debts account for the year 2018, 2019 and 2020

.T.Challa set up his firm on 1 Jan 2018. The total amount of Trade Receivables in the books was RM100,000 on 31 Dec 2018. He decided to write off 10% of the receivables as the Allowance for Doubtful Debts for the year ending 31 Dec 2018. The Trade Receivables was RM 200,000 in the year 2019 and RM 150,000 in the year 2020. The rate remained at 5%. Required : c) Prepare a Doubtful Debts account for the year 2018, 2019 and 2020 d) Prepare a Provision for Doubtful Debts account for the year 2018, 2019 and 2020

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Ameera Enterprise had a balance on its allowance for doubtful debts of RM26,250 as at 31 December 2019. Allowance for doubtful debts was estimated at 5% on account receivable. On 31 December 2020, the balance of its net accounts receivable was RM550,000. Calculate the amount of doubtful debts to be shown in the statement of profit or loss for the year ending 31 December 2020 O RM2,500 O RM25,000 O RM1,250 O RM27,500
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