Prepare the journal entries necessary to record the above transactions and calculate the amount to be recognised in the statement of profit or loss.   2. Write up and balance off the:   (i) Bad debts expense account   (ii) Doubtful debts expense account   (iii) Allowance for doubtful debts account.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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1. Prepare the journal entries necessary to record the above transactions and calculate the amount to be recognised in the statement of profit or loss.
 
2. Write up and balance off the:
 
(i) Bad debts expense account
 
(ii) Doubtful debts expense account
 
(iii) Allowance for doubtful debts account.
 
 
 
The books of John reveal an allowance for doubtful debts of RM206 brought
forward on 1 January. Trade receivables at 31 December amount to RM2,440
and bad debts to be written off total RM60 (direct write-off method). An
allowance amounting to 5% of trade receivables is required to be carried
forward.
Transcribed Image Text:The books of John reveal an allowance for doubtful debts of RM206 brought forward on 1 January. Trade receivables at 31 December amount to RM2,440 and bad debts to be written off total RM60 (direct write-off method). An allowance amounting to 5% of trade receivables is required to be carried forward.
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