3. The following is the trial balance of Aroro Enterprise as at 31 August 2019 Debit (RM) Credit (RM) 48,400 Particulars Сaptal Drawings Trade receivables Trade payables 3,500 9,000 12,500 40,400 Sales 31,000 300 Purchases Sales returns Purchases returns 250 Wages and salaries Discounts allowed 5,600 120 Discounts received 200 Provision for doubtful debts 300 Insurance 700 Inventory as at 1 September 2018 Utilities Rates Premises Fixtures and fittings Motor van 2,400 950 350 10,000 3,000 20,000 330 Cash in hand Cash at bank 14,800 102.050 ТОTAL 102.050 Additional information as at 31 August 2019: i. Inventory as at 31 August 2019 amounted RM3,300 ii. An entity from whom there is accounts receivables of RM200 was unable to settle his debt and this amount is to be written off as bad debts. iii. The provision for doubtful debts is 1% of the outstanding trade receivables. iv. The owner took RM100 worth of goods from the business for his own use

3. The following is the trial balance of Aroro Enterprise as at 31 August 2019 Debit (RM) Credit (RM) 48,400 Particulars Сaptal Drawings Trade receivables Trade payables 3,500 9,000 12,500 40,400 Sales 31,000 300 Purchases Sales returns Purchases returns 250 Wages and salaries Discounts allowed 5,600 120 Discounts received 200 Provision for doubtful debts 300 Insurance 700 Inventory as at 1 September 2018 Utilities Rates Premises Fixtures and fittings Motor van 2,400 950 350 10,000 3,000 20,000 330 Cash in hand Cash at bank 14,800 102.050 ТОTAL 102.050 Additional information as at 31 August 2019: i. Inventory as at 31 August 2019 amounted RM3,300 ii. An entity from whom there is accounts receivables of RM200 was unable to settle his debt and this amount is to be written off as bad debts. iii. The provision for doubtful debts is 1% of the outstanding trade receivables. iv. The owner took RM100 worth of goods from the business for his own use

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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Please assist
The net realizable value of the accounts receivable at December 31, 2021 isoverstated (understated) by: Please include solutions. Thank you!
1. Accounts receivable balance as of December 31, 2020 2. Allowance for doubtful accounts as of December 31, 2020 3. Net realizable value, December 31, 2020 4. Doubtful accounts expense for 2020
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Haresh
Subject: acounting
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