Question 3 Becon Company started its trading business on 1 January. During each of the past three years ended on 31 December 2019, 2020, 2021, the debts were written off on the dates stated as follow: 17 February 2019 19 October 2019 11 March 2020 12 August 2020 03 March 2021 19 September 2021 Kenneth Batoh Y. Yap Pecon Sai Hoh Ismail RM320 RM190 RM220 RM430 RM540 RM390 Additional Information: (i) On 31 December 2019, the balance of accounts receivable was RM9,800. It was decided to make an allowance for doubtful debts of RM1,500. (ii) On 31 December 2020, there had been a total of accounts receivable remaining of RM8,800. It was decided to make an allowance for doubtful debts of RM1,750. (iii) On 31 December 2021, there had been a total of accounts receivable remaining of 9,200. It was decided to make an allowance for doubtful debts of RM1,650. Required: (a) Prepare the Bad Debts Accounts and Allowance for Doubtful Debts Account for 2019, 2020 and 2021. (b) Prepare the Income Statement (extract) for each of the years ended 31 December 2019, 2020 and 2021 (c) Prepare the Balance Sheet (extract) as at 31 December 2019, 2020, and 2021.

Question 3 Becon Company started its trading business on 1 January. During each of the past three years ended on 31 December 2019, 2020, 2021, the debts were written off on the dates stated as follow: 17 February 2019 19 October 2019 11 March 2020 12 August 2020 03 March 2021 19 September 2021 Kenneth Batoh Y. Yap Pecon Sai Hoh Ismail RM320 RM190 RM220 RM430 RM540 RM390 Additional Information: (i) On 31 December 2019, the balance of accounts receivable was RM9,800. It was decided to make an allowance for doubtful debts of RM1,500. (ii) On 31 December 2020, there had been a total of accounts receivable remaining of RM8,800. It was decided to make an allowance for doubtful debts of RM1,750. (iii) On 31 December 2021, there had been a total of accounts receivable remaining of 9,200. It was decided to make an allowance for doubtful debts of RM1,650. Required: (a) Prepare the Bad Debts Accounts and Allowance for Doubtful Debts Account for 2019, 2020 and 2021. (b) Prepare the Income Statement (extract) for each of the years ended 31 December 2019, 2020 and 2021 (c) Prepare the Balance Sheet (extract) as at 31 December 2019, 2020, and 2021.

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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