Hameed Books Store started the business of buying and selling text books on 1 January 2018. At the end of each of the next Three(3) years, his figures for debtors, before writing off any Bad debts, were as follows: 31 December 2018 RM30,000 31 December 2019 RM38,100 31 December 2020 RM4,750 Bad debts to be written off are as follows: 31 December 2018 RMO 31 December 2019 RM2,100 31 December 2020 RM750 The Allowance for Doubtful debts in each year is 5% of outstanding net debtors i.e. after writing off Bad debts. Required: (1) Prepare Hameed Books Store Bad debts expense account and Allowance for Doubtful debts account for financial year 2018, 2019 and 2020.

Hameed Books Store started the business of buying and selling text books on 1 January 2018. At the end of each of the next Three(3) years, his figures for debtors, before writing off any Bad debts, were as follows: 31 December 2018 RM30,000 31 December 2019 RM38,100 31 December 2020 RM4,750 Bad debts to be written off are as follows: 31 December 2018 RMO 31 December 2019 RM2,100 31 December 2020 RM750 The Allowance for Doubtful debts in each year is 5% of outstanding net debtors i.e. after writing off Bad debts. Required: (1) Prepare Hameed Books Store Bad debts expense account and Allowance for Doubtful debts account for financial 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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