b) A business started trading on 1 January 2019. During the two years ended31 December 2019 and 2020, the following debts were written off to the baddebts accounts on the dates stated below:RM34031 March 201930 September 201931 January 202031 May 202031 October 2020Ahmad EnterpriseLingam CompanyAh Moy TradingRM510RM120Cik Yah Sdn BhdRM220Pak Abu EnterpriseRM240On 31 December 2019 there had been a total of trade receivables remainingof RM87,100. It was decided to make a provision for doubtful debts at 3% oftotal net trade receivables.On 31 December 2020 there had been a total of receivables remaining ofRM92,200. It was decided to make a provision for doubtful debts of RM3,000.Required:(Note: Kindly rounding up your figures to the nearest integer numbers)i. The Bad Debts Accounts and the Provision for Doubtful DebtsAccountsforeachofthetwoyears.ii. The relevant extracts from the Statement of Financial Postitions as at31December2019and2020.

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Business

Accounting

otal of trade receivables remaining

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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Question

b) A business started trading on 1 January 2019. During the two years ended
31 December 2019 and 2020, the following debts were written off to the bad
debts accounts on the dates stated below:
RM340
31 March 2019
30 September 2019
31 January 2020
31 May 2020
31 October 2020
Ahmad Enterprise
Lingam Company
Ah Moy Trading
RM510
RM120
Cik Yah Sdn Bhd
RM220
Pak Abu Enterprise
RM240
On 31 December 2019 there had been a total of trade receivables remaining
of RM87,100. It was decided to make a provision for doubtful debts at 3% of
total net trade receivables.
On 31 December 2020 there had been a total of receivables remaining of
RM92,200. It was decided to make a provision for doubtful debts of RM3,000.
Required:
(Note: Kindly rounding up your figures to the nearest integer numbers)
i. The Bad Debts Accounts and the Provision for Doubtful Debts
Accounts
for
each
of
the
two
years.
ii. The relevant extracts from the Statement of Financial Postitions as at
31
December
2019
and
2020.

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