Zulkifli sells goods on credit to customers, he had the following trade receivables at the end of the past five years: Year Trade Receivables (RM) Bad Debts (RM) 2016 13,800 18,240 13,320 400 2017 320 2018 2019 13,320 17,280 460 2020 It is the business's policy to create a provision for doubtful debts equal to 2.5% of the trade receivables outstanding at the end of each year. The trade receivable balances shown above are after all bad debts write off. His financial year ends on 31 December. On 6 September 2019 Zulkifli received a cheque for RM3,230, it is a recovery of bad debts made in respect of debts written off in 2018. Prepare the following accounts in the ledger of Zulkifli for each of the years ended 31 December 2016 to 2020: (i) Bad Debts (ii) Allowance for Doubtful Debts Copy the table given below, enter the amount of allowance for doubtful debts that appeared in the Income Statement, making clear whether they are debit or credit. Income Statement Year Debit Credit RM RM 2016 2017 2018 2019 2020 Show the Balance Sheet extract in respect of trade receivables for each of the years ended 31 December 2016 to 2020.

Zulkifli sells goods on credit to customers, he had the following trade receivables at the end of the past five years: Year Trade Receivables (RM) Bad Debts (RM) 2016 13,800 18,240 13,320 400 2017 320 2018 2019 13,320 17,280 460 2020 It is the business's policy to create a provision for doubtful debts equal to 2.5% of the trade receivables outstanding at the end of each year. The trade receivable balances shown above are after all bad debts write off. His financial year ends on 31 December. On 6 September 2019 Zulkifli received a cheque for RM3,230, it is a recovery of bad debts made in respect of debts written off in 2018. Prepare the following accounts in the ledger of Zulkifli for each of the years ended 31 December 2016 to 2020: (i) Bad Debts (ii) Allowance for Doubtful Debts Copy the table given below, enter the amount of allowance for doubtful debts that appeared in the Income Statement, making clear whether they are debit or credit. Income Statement Year Debit Credit RM RM 2016 2017 2018 2019 2020 Show the Balance Sheet extract in respect of trade receivables for each of the years ended 31 December 2016 to 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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Max Corp. sold goods for $36,000 on July 17, 2020, and accepted a 12%, 90-day note. On August 1, the note was sold to a bank at a 15% discount rate. Required: a. Compute the proceeds. Assume a 360-day year. b. If the maker dishonored the note at maturity, prepare the entry for Max Corp. assuming $75 of bank protest fees. If an amount box does not require an entry, leave it blank.
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